HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Emerging markets: an intriguing niche


Emerging markets are the countries that possess some characteristics of a fully developed market but do not have enough to be considered developed. In this group are countries that were once thought to be developed but changes to the market have the economy riskier or less stable, and of course, some of these markets will one day likely reach fully developed market status. ‘Frontier market’ is a related term that denotes a market that is smaller or riskier than an emerging one.

Countries with Developing Economies


The two largest emerging markets today are China and India, which find themselves in a group called BRIC, an acronym for the four largest developing economies, Brazil, Russia, India and China. As a duo, China and India serve as a base to some 40 percent of the world’s population and labour force, and together their output at over $32.5 trillion is much greater than that of the United States or the European Union.

Other large groups of developing markets that include the four BRIC countifies are BRICET, which is BRIC with the addition of Eastern Europe and Turkey, BRICM, which is BRIC plus Mexico, BRICS, with the addition of South Africa.

Other emerging economies lumped together are MINT, which is Mexico, Indonesia, Nigeria and Turkey; CIVETS, which groups together Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa; and Next Eleven, which is these emerging markets lumped together: Bangladesh, the Philippines, Egypt, Indonesia, Nigeria, South Korea, Pakistan, Turkey, Mexico, Iran, and Vietnam.

Perhaps a more encompassing look at these markets would be the 10 Big Emerging Markets, known as BEM. In alphabetical order they are: Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. Of course, everyone brokerage has their own breakdown and list of emerging markets.

One well-known US investment firm includes all these as emerging markets in their Emerging Market Index: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Qatar, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey, and United Arab Emirates.

These compare to the established advanced economies of the United States, Japan and western Europe.

Defining Emerging Markets


Over the years, there have been various definitions of an emerging economy, with scholars studying them. In the 1970s, there was the idea that ‘less developed countries’ could provide more profit potential than developed economies, with greater risk, of course. But soon that term led to emerging market, though economies do not necessarily ever ‘emerge’.

So, perhaps the best way to look at these markets is as a market economy that is developing. No one knows for sure which parameters t use in classifying developing markets, just like no one knows how developed a particular economy will reach or when, but for now, it is progressing towards advancement. And emerging economies are important to the global economy, driving growth.

There seem to be several characteristics that developing economies share. Low per-capita income, rapid growth, volatility, and finally, a high ROI. When looking at economic growth, we can see in 2017, the most developed countries, such as the United Kingdom, the United States, Germany and Japan, was less than 3 percent. At the same time, growth in the economies of Egypt, Poland, and Morocco was greater than 4 percent. For emerging markets China, Turkey and India, their economies grew in the neighbourhood of 7 percent.

Investing in emerging economies is not right or wrong. Some investors find these characteristics attractive and choose to invest in emerging markets. Of course, other investors choose more established economies to invest in, preferring economies that are already developed, with less chance for volatility.

#source


RELATED

Which Citizenship by Investment Programs are Crypto-Friendly?

With the evolution of the digital era, the crypto industry has taken the world by storm. In most countries, digital assets are considered a commodity rather than currency...

Synthetic and Crypto Currency: What Are They, How to Create and Use Them

The set of trading tools that NordFX offers to its clients is a whole arsenal that allows a trader to apply the most effective strategies and win on the fields...

How to earn cryptocurrency without investment

Everyone enters the cryptocurrency space to make money, but not all of them succeed. Many people either give up or lose money because they do not correctly understand how to make money with cryptocurrency.

What do you need to know about options CFDs?

Unlike traditional options, which are contractual obligations giving the right to purchase or sell an asset at a future date, the options CFDs we offer are derivative...

Copy Trading Strategies: How to Start Successful Copy Trading

To be a successful copy trader, you need to understand quite a bit of nuance and things to ensure that it is the profitable venture you are hoping for...

Commodity Trading and its Role in Energy Transition

The global energy landscape is rapidly transforming, driven by the need for sustainable and cleaner energy sources. The challenges of this energy transition are vast and complex...

Litecoin Versus Ethereum And Where To Invest

A key difference in the makeup of these two coins is that Ethereum is built to be a platform for applications and other programs to work on - it is known as a decentralised...

IronFX: Do IBs have a regular broker access?

When choosing to be a part of something, we usually consider the reasons that would make us want to join. Maybe it’s the people involved, or trustworthiness...

WETH vs. ETH: What’s the Difference?

Ethereum (ETH) and Wrapped Ethereum (WETH) are two digital assets that have become increasingly popular in the world of decentralized finance (DeFi). While both assets share many similarities...

Understanding ECN and STP Trading

Selecting a trustworthy and reliable broker is a fundamental step in your trading journey. Your trading platform should be your long-term partner, offering essential features and support...

What is the Metaverse? The future of the internet

When Mark Zuckerberg announced that he’s turning Facebook into a metaverse company and changed the company's name to Meta, the metaverse quickly became...

NFTs and Tokenization of the Economy

Non-Fungible Tokens (NFTs) are the new hype in the digital world. These tokens are digital representations of value created using blockchain technology...

Forex Hedging: Shielding Your Business from Foreign Currency Risk

Forex hedging stands as a cornerstone of currency risk management, a strategic shield that businesses employ to safeguard themselves against losses arising from the unpredictable fluctuations in foreign exchange rates. In essence, it involves the acquisition of financial instruments or products to shield an enterprise from unforeseen shifts in exchange rates.

Stocks CFDs That Could Get a Boost on Black Friday

As the busiest shopping season of the year approaches, consumers are getting ready to open their wallets and swipe their cards away. However, this season is not only...

Does the Stock Market Reflect the Real Economy?

The stock market has often been regarded as an indicator or predictor of the real economy. Its suggested that a large downward movement in the stock market (20% and below) is telling of a future recession...

Exchange Traded Funds (ETF) - Meaning, Types, Benefits

ETF funds may become a good alternative to stocks for those who have just turned their attention to earning on the stock market. We have decided to find out what ETFs are worth choosing...

Delving Deeper into Stocks: Understanding Ownership, Trading, and Market Dynamics

Stocks are not just another piece of paper or a digital asset; they symbolize a fragment of ownership in a company. In the vast realm of finance, stocks may don several hats...

Some things you need to know about investing in cryptocurrency

Whether you have thought about investing in cryptocurrency for a long time or it is an idea that sprang up recently, there are some things you should know before getting started...

The Measurements to Take When Investing in Ethereum

Ethereum is among the top 10 digital currencies on the cryptocurrency market, according to market cap. As of April 2019, the market price of Ethereum was $152 per unit...

Advantages and disadvantages of forex rebate

If you are really concerned about your profit on the forex market you should definitely use one of the mayor forex rebate providers...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.