Brexit Banks: 30+ Firms to Leave London

We all know that a painless Brexit banks on a fair exit deal, but many big banks don’t care either way. Will the abandonment of London nudge the UK’s financial house of cards into a downward tumble? How will this affect everyday people and traders of GBP? Nobody can say with certainty, but most financial media outlets are not painting a pretty picture.

So far, 30 banks are gearing up to move their EU headquarters from London to overseas locations such as Germany. The powerhouse leavers on the list include Citigroup, Bank of America, Goldman Sachs, and JPMorgan. The move will affect a staggering 10,000 employees, but will moving offices overseas really make such a difference to the UK’s economy?

These so-called “Brexit banks” leaving the UK will surely damage London’s status as a financial capital. The banks are already preparing to transfer assets to the value of €800 billion in the coming months, which will leave a sizable scar in the FTSE. Whenever the Footsie takes a hit, the pain tends to filter down to loan interest rates and even unemployment. Does the UK have a contingency? If it does, it hasn’t been made public yet.

What if Brexit were to be abandoned tomorrow?

A lot of politicians and financiers would probably breathe a sigh of relief, but many believe the damage is already done. While the main reason for the Brexit banks pulling out of the UK is clearly the exit from the EU, most financial firms say they will still leave, even if Brexit doesn’t go ahead. This perhaps marks a major and concerning low for GBP market sentiment, which now seems to be past the point of no return.

Brexit banks are setting a dangerous precedent

What started off as a chance for the British people to voice their concerns over increasing immigration is fast becoming a catalyst for the fall of the British economy. But the blame should not be placed on the British public.

“Liars duped Brits into voting for Brexit”

French Finance Minister Bruno Le Maire

Many people outside the UK are unaware of how Brexit was introduced to voters. The British public was not sufficiently informed of the fallout that would follow an EU exit, and the minority warnings were buried under pro-Brexit announcements by the media. Now that some of the consequences are out, government resignations are occurring, 7 more banks are considering an exit, and big businesses are looking for strategies to survive the fallout.

The future of GBP

While the British economy will likely take a massive hit after Brexit, it will not completely collapse. Businesses will close or relocate, unemployment will rise, and immigrants still working in the UK may suffer as national resentment rises. Having said that, like a Pheonix from the ashes, a new generation of entrepreneurs will lead the way to an economic recovery. This is the way of things and it has been for centuries. Britain will not fall, but GBP’s rankings within the forex markets will suffer for more than a year.

For now, traders should perhaps step back and take a look at the big picture. Compare GBPUSD’s disastrous 1.0626 in the early 1980s to the recent 1.2133 low around Brexit. Historically, every major GBP fall was followed by a rebound within 5 years, although a 50-year price chart does show a clear downward trend.

Before you give up on GBP entirely, consider this little nugget of info. If you’d bought gold back in the early 2000s when prices were low, you would have seen a 700% return on investment within a decade. GBP looks set to hit rock bottom soon, so perhaps a long term buy option will be the order of the decade after all.

Lastly, forex traders have the option to sell a currency pair as well as buy, which means there are always money-making opportunities, even with GBP. There’s no shame in personally profiting from an economic crisis. If you would like to take advantage of the current global markets, open an account with Exness and put your financial future in your own hands for a change.

Using global media to forecast prices has never been easier

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Your 4-step guide to opening a trading account

Step 1: Getting registered

It’s very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the video as you go through the first three steps.

Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results… both good and bad.

Step 2: Prove who you are

Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you’ll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.

Tip: While you’re waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.

Step 3: how to get access to the market

Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you’ll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You’re about to make your first virtual trade on the real markets.

Step 4: making a trade

As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.

As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.

Open a trade

There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.

Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.

Congratulations!

You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you’ll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?

Didn’t start yet?

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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation.

This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.

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