As the call for environmental responsibility grows louder, individuals and industries are seeking sustainable practices in every aspect of life, including financial markets. While it’s easy to think that forex trading is exempt from this trend, they’re not. According to statistics, 78% of consumers now feel that sustainability is paramount – and this sentiment is mirrored within trading communities.
If you’re concerned with environmental conservation and want a trading strategy that supports your moral values, we’ve detailed ways you can make your portfolio more eco-friendly.
Go paperless
We all know how important it is to avoid landfill. Although around 48% of paper waste in the UK is recycled, it’s better to reduce your consumption in the first place.
One way you can do that is by going paperless or using a digital trading platform. Rather than relying on paperwork, transitioning to digital platforms reduces the need for paper production and disposal. Eco-conscious traders can use electronic documentation, e-signatures and online platforms to execute trades and manage their portfolios.
It might not sound like much, but if all traders made the switch, the trading environment would be much more sustainable.
Utilise ethical investment practices
Incorporating eco-friendly principles is important when looking at your portfolio. One way you can stick to your morals is by only trading currency pairs from countries that favour environmentally friendly policies.
By avoiding currency pairs from countries less concerned about the environment, you can ensure you’re trading in an eco-conscious manner.
Algorithmic trading
The use of automated systems to execute trades can help you become more eco-friendly as a trader. These systems work to optimise trading processes by reducing the amount of time and resources going into each trade. This increased efficiency can help you lower the overall impact of trading activities.
Carbon offsetting
Just like you would for a long-haul flight, savvy traders should proactively address their carbon footprint by joining in with carbon offsetting initiatives.
If you’re a trader looking to offset your carbon footprint, you should invest in projects that reduce or capture an equivalent amount of greenhouse gas emissions to those generated by trading activities.
Whether that’s supporting renewable energy projects or funding reforestation efforts, by offsetting your carbon footprint, you can make trades while contributing to a more sustainable future.
Final thoughts…
Many traders believe that they need to choose between sustainability and trading. But that’s simply not the case! As long as you go paperless, choose environmentally friendly currency pairs and consider carbon offsetting, you can stick by your principles and execute trades.