Future of the Forex Exchange Markets
Forex is called as a non-geographical, existential and the foreign exchange market exists where one currency is traded for another. This is one of the largest exchange market in the whole world.
With billions traded every day includes trading between large banks, individual investors, corporations, governments and various other institutions.
Beginning of Forex Trading Market
Forex was established in the year of 1971. Forex trading has recently become an individually traded market.
Until the present time, only major institutions could trade on this market. Retail traders are currently a small, but constantly growing, part of the Forex.
Ten years ago, the Wall Street Journal estimated the daily trading volume in the forex market to be in excess of $1 trillion. Today that figure has grown to exceed $1.8 trillion a day. Based on the Bretton Woods Agreement of 1945 aimed to stabilize international currencies and prevent money fleeing across nations, the U.S. dollar became fixed at a rate of $35 per ounce of gold.
Thus, the gold standard was formed and Forex trading became a possibility. But only in 1971, when the Bretton Woods Agreement was abandoned, was the Forex market established. By 1973, major currencies became free to the push of supply and demand. The power of speculators came to be.
With the advent of technological innovations like computers in the 1980s, money was soon able to be traded across time zones. Within minutes, like never before, massive amounts of currency could be exchanged. Today, London holds the worlds largest international financial center and the major site for Forex trading.
The interbank market is beneficial for both the major commercial turnovers and large amounts of purely speculative trading that takes place on an everyday basis. Some large banks trade billions of dollars daily.
While some of that trading is on behalf of the banks customers, much is for the banks own account. Until recently, brokers on the market did most of the business of trading for a small fee, but now individual investors can jump in on their own.
The benefits of individual investors gaining hands-on access to Forex trading really came to be when the large inter-bank units began to offer small traders the opportunity to buy or sell smaller units (or lots) on their own.
Forex Trading Before 2006
In past, the Forex market is appealing because of its massive trading volume, extreme liquidity, the number and variety of traders in the market, long trading hours, factors that affect the currency exchange rates and the geographical dispersion of the market.
Between April 2005 and April 2006, Forex trading increase by 38 percent and has more than doubled since 2001. This can be attributed to the increasing importance of foreign currency exchange as an asset and an increase in fund management assets.
Also, the vast array of execution venues, like Internet trading platforms, has also made it easier for retail traders to trade.
In May 2006, a European exchange survey company found the top 10 investors in the Forex market were mostly American banks such as Bank of American and JP Morgan Chase, as well as international investors like Deutsch Bank and Barclays Capital.
Present and Future of Forex Trading Market
At present, forex trading is the best profit making option for individual investors and more individual still joining in the forex market. Forex trading increased a lot from back 2006 to 2019 now.
Trading on the foreign exchange market is up and coming as an investment opportunity and solution for people, companies and institutions worldwide.
Future of the Forex is bright. You can choose Forex Exchange Markets for your investing platform and make money from it trading daily learning all the required strategy and knowledge.