Retail Forex Trading: Here is The History and Where to Start

Now that you have a fair knowledge of forex, you’re eager to start your pippin’ Odyssey.

But before you embark on your forex trading journey, there is one more thing that you need; a real account (not a demo) with a broker!

Yes, we want you to get involved with a broker that will ensure all your individual needs are satisfied. Hence, we have come up with this segment of forex to help you know the right things you need to be successful in your quest and to know the right broker to choose.

However, we are going to start by revisiting the forex trade pages of history (call us revisionist lol) to discover how brokers came to be.

There are so many things that the mighty brains of the internet have given to us on a platter of gold–Netflix, YouTube, Facebook, Instagram, and of course, this website; name it. They are amazingly helpful.

But what we are here to talk about is the most valuable gift to forex possessed folks like you and me: Retail Trading.

As a matter of fact, if not for the birth of online forex brokers, forex enthusiasts probably would not have existed.

Rolling back the years to the 90s, it was a difficult era for people to partake in the retail forex market due to remarkably higher cost of transactions.

During those times, governments were like the police keeping watchful and restrictive eyes on exchange activities. As time wore on, the CFTC ‘rebelled’ and decided it’s had enough.

Shortly, a couple of legislation were passed such as the Commodity Futures Modernization Act and the Commodity Exchange Act—two bills that eventually opened the doors for online forex brokers.

Considering that almost everyone on earth has access to the internet, it was simple and convenient to open an account with a broker.  

Brokers of varying degree started popping up and setting up business everywhere you turn. There was a strong eagerness to take advantage of the thriving industry.

However, now that people have many choices from which they can choose, it is also challenging to distinguish the good broker from the evil and greedy ones related to Elisha’s Gehazi.

Believe me; we are not joking about the wicked and evil brokers. There are many of them out there, and they are also known as bucket shops. Just sit tight for our next lesson; we are going to be discussing more about that later.  

Learn Type of Forex Brokers

Follow the next articles to find out more about types of Forex broker.

  • BrokerEUR/USD
    Core Spreads 0.6pips (variable) margin: 3.33%
    LCG 0.3pips (variable) margin: 3.33%
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