SINCE January 31st Britain has gone solo after departing from the EU.
Over the past few years, this decision has caused widespread controversy throughout Britain due to the after-effects it was suspected to entail. One of the areas of concern for businesses and investors was – what would this move mean for day traders? Regardless of how big or small your business may be, there’s no doubt that Brexit will take effect at some stage, so it’s important to know where you stand.
Another major concern was whether this move would reduce the value of the British pound as a result of a ‘Hard Brexit’. This term refers to the fact that if there was no withdrawal agreement in place by the deadline, the UK would leave the EU with little or no trade deals and could, therefore, have a significant impact on the financial security and opportunities for businesses. According to a report carried out by the BBC, 79% of food within our supermarkets is imported from overseas, consequently, if there was no other option but to accept a ‘Hard Brexit’, it would mean that the assortment of goods and mass of produce could be affected. In July, it was confirmed that Boris Johnson secured a trade deal with Japan, which was a positive move that Britain would survive after Brexit.
The good news is that the withdrawal agreement was signed off on January 31st 2020, meaning that trade deals had been saved and the future of businesses and investments had been stabilised for the current time. However, Northern Ireland protocol will leave the EU in January 2021 and until then, will adhere to EU regulations.
As a result, goods and produce arriving into the country will need to be assessed under EU standards before being sold.
Although it’s impossible to predict the future and the after-effects of Brexit in the coming months and years, it’s important to plan ahead to ensure your investments are protected in the event of the drop in the pound. While there is the opportunity to make significant profits, there is also a possibility that you could make a substantial loss, depending on the state of the economic climate at any given time.
With this in mind, you could consider spread betting in UK as a safe and sensible investment option after Brexit. This type of investment gives you the chance to buy and sell in over 8000 markets globally and spread your risk over various stocks.
Simply choose your stake size and how many pounds per point to stake. Some of the other benefits of this type of investment include earning tax-free profits and having access to thousands of trading opportunities on a 24-hour basis, that both interest you and earn you the best return per pound invested.
Backers of Brexit have agreed that leaving the EU will benefit the UK trade economy by having the freedom to set its own trade policy. However, it is still very early days and the impacts of the situation are sure to be revealed in the coming months and years.