Forex and You

Forex, the global spot foreign currency market, is the world’s oldest, most liquid and largest financial market, with about $ US 2.2 trillion traded daily by corporations, financial institutions and private investors. Large institutions have traditionally dominated Forex, with about 850 institutional trading floors around the world. Forex offers huge financial returns and has, until recently, been inaccessible to most individual traders.

Through efficiencies created by the Internet, the retail forex market has emerged and is gaining strong momentum. Thousands of individual traders, like you, enter the market every day. Individuals now have an opportunity to trade and profit from the currency market, just like Forex traders at the world’s major financial institutions! We are at the dawn of a democratized global currency trading marketplace!

Although the Market seems perfect, the benefits of this Market historically could and have only been realized by a few select participants. Unfortunately, something is very, very wrong.

The current market consists of three levels, where “price makers” (dealers) from the top financial institutions offer two-sided pricing to “price takers” (traders) of the lower tiers. The first and second tiers have access to all the prices offered in the Market, while the third tier has “ILLUSIONARY” access. This third tier consists of the “retail” participants: the general public. We, the individual traders have limited resources, which restrict our ability to obtain primary dealing sources. This, in turn, makes it very difficult for us to make the kind of profits that are available to the participants at the higher tiers. This one-on-one “price maker” to “price taker” relationship allows dealers to “lean” prices according to their views and knowledge of their clients’ current positions, thereby making huge profits and limiting their clients’ profitability.

The principal disadvantage of retail online Forex is not being part of a networked community and the loss of personal contact. There are thousands of us, individual traders stranded out there. We are a significant market force to be reckoned with, based on our size and potential buying power alone. IFXTAG is committed to harnessing that potential to make electronic trading work for our global community of subscribers.