Who Participates In Forex Market Trades?

Historically, trading in the Forex market was manipulated by very large stakeholders that took part in international trade. This included governments, banks, multi-national corporations and other such large financial institutions. Most of the trading that took place was for millions if not billions of dollars. The Forex arena was not a place that an average investor could even get close to.

All this changed with the advent of the Internet and technology revolutionized the Forex market so much it was almost unrecognizable from its former self. Trading currency was not limited to international trade alone and became a market where currencies were traded purely for profit and not just as a by product of payment for goods and services of one country by another. Technology made the entire process of trading currency more accessible to the average retail investor. A trader could trade from anywhere as long as he had a fast Internet connection, a good computer and a few hundred dollars to invest. Things became simplified to such a degree that small time investors literally swarmed the Forex market.



This had its own advantages such as high liquidity which in turn attracted even more traders to the Forex market. All that a trader has to do now is to find a good Forex broker, study the market and invest in currency trading. All this can be done from the comfort of your own home. Another advantage with Forex trading was that the market was accessible throughout the day for five and a half days a week. It only stopped on Saturday afternoon only to be resumed on Monday morning each week allowing ample time for trading to be done as there was no question of opening or closing the market.

The Forex market is not regulated by any central exchange unlike the stock index trading market. This is another factor that made it easier for small time traders to enter the market. They could find a market at any given time of the day open somewhere in the world that was willing to do business. As you can see, all these changes in the Forex market has made this market the largest on the earth with a daily turnover in excess of three trillion dollars each day. This will show you how many retail traders are engaged in Forex trading today in addition to the big time players who handle international trade.