Is Forex Trading just a New Trend?

by Andrew McGuinness     Dec 26, 2017

Though Forex Trading has recently become a major investing trend, this was not always the case. Contrary to popular belief, the foreign exchange market is actually older than AC/DC, coming onto the investing stage in 1971. However, despite being up and running, trading Forex was uncommon amongst everyday people because it was prohibitively expensive. High margins meant that sometimes, consumers couldn't enter the market with a bid under $100,000. As at this stage, Forex Trading wasn’t really offered to retail clients, activity was largely limited to governments, international corporations, and banks for about the first 35 years of its existence.

Then, Forex made a huge move in the late 1990's that would cause it to explode on the public stage. The market was made available for use and trade by the general public, and margins were significantly lowered. Forex Brokers catering to public interest and the everyday man looking to chase his fortune in international currency trading, amended their requirement and seemingly overnight the Forex market was flooded with people from all walks of life looking to buy and sell currencies in hopes of making a profit, a practice that was previously only manageable by massive companies and banking institutions.

The Forex market of today is largely different from the Forex market that existed in the late 90's. For starters, with the advent and spread of the internet, it's never been easier to step onto the stage of international currency exchange. Now is one of the best times in history to take advantage of Forex Trading because information is now abundantly available on everything from trading strategies to live updates of currency pair exchange rates. You can find a ton of information on how best to trade Forex, from online courses to tell-all books that share the stories of those who hit it big through currency trading to simple and easy-to-understand guides that lay out exactly how to read a Forex chart; you won't have to begin your trading journey alone like our older relatives would have, making your investments less risky if you're the type to plan and research the right way.

Another benefit of jumping into Forex Trading now is the increasing world dependence on international trade. As globalism spreads throughout the world and travel becomes easier and more affordable than ever, experts predict that international cooperation and trade between companies will continue to increase. This puts additional weight in the value of Forex Trading; trading currency pairs relies on the cooperation and communications between two nations. Without trade agreements, exports, and imports, there can be no bull and bear cycle for traders to take advantage of and make money. This is why currencies pairs that "communicate" with one another through trade are the most popular and the most profitable- the conversion of the United States dollar to the European euro or the Japanese Yen are most common. The Forex market is also open 24 hours a day, 5 days a week due to the differences in time zones as well, which appeals to many who cannot trade on the US stock exchange because they work traditional 9 to 5 hours or they are a stay-at-home parent who is responsible for watching the kids during the day.

Now is the best time to dive into the world of Forex Trading and begin doing research on what trading strategy is right for you. Don't let the opportunity pass you by, you're living in the digital age of currency trading!

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