Retail foreign exchange trading is a small segment of the larger foreign exchange market where individuals speculate on the exchange rate between different currencies. This segment has developed with the advent of dedicated electronic trading platforms and the internet, which allows individuals to access the global currency markets. In , it was reported that volume from retail foreign exchange trading represents 5.
Prior to the development of forex trading platforms in the late 90s, forex trading was restricted to large financial institutions. Today, traders are able to trade spot currencies with market makers on margin. This mean they need to put down only a small percentage of the trade size and can buy and sell currencies in seconds. The year saw the first generation of forex online trading platforms. As a result, foreign exchange and customers' markets flourished.
Web-technology not only allowed retail foreign exchange trading to foster easy and fast ways for customers to access the markets, but also currency pairs while making trades from their own computers. The software development of trading platforms has seen a number of stages. Initially, trading platforms were based on basic programs downloaded to computers, such as the popular MetaTrader 4. This was followed by the development of easier-to-use interfaces and advanced features such as charting and technical analysis tools.
The next stage saw the move to web-based platforms and mobile devices such as tablets and smartphones. Since there has also been a focus on developments to integrate automated trading tools and social trading into the forex trading platforms.
Retail forex trading has been promoted by some as an easy way to make profits and has thus been the focus for a number of foreign exchange frauds. From Wikipedia, the free encyclopedia. The Connors Group, Inc. Retrieved 14 June Forex Capital Trading Ltd. The Wall Street Journal. Dow Jones and Company. Retrieved 13 December Retrieved from " https: Foreign exchange market Online brokerages Financial markets Financial services.
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