News & Blog
- May 18, 2021
- Posted by: Admin
- Category: Blog
In the world of trades, the forex market and forex trading skills have been around for a while. Before that, however, what took its place? Well, when World War II came to an end, the entire world was going through unspeakable chaos. Western governments needed to create a system to make sure the global economy did not completely fall apart.
The “Bretton Woods System” agreement eventually came to be, and made the exchange rate of the United States dollar against gold. While this kept things stable for a little bit, the rules of this system became obsolete, and why wouldn’t they? After all, the world’s economies were going through constant change, and with change came new systems. In 1971, the Bretton Woods agreement was removed and replaced with a different currency system.
Once the nineties came along, so did the advancement of technology. This would see itself as a huge advantage in the world of currency systems and their efficiency. Around this time, banks began creating their own platforms for trade. These platforms were made to stream quotes live so that people could go about trading on their own accord.
Retail Forex Brokers
Thanks to retail brokers in forex, pretty much anyone can trade currencies now. The entry barriers are minimal, and you have accessibility to do all of your trading from home.
Brokers come in two forms, known as “Market Makers” and “Electronic Communications Networks”. Market makers make their own bid and ask prices on their own, whereas ECN brokers use the best prices available to them.
Retail market makers, in simplest terms, provide liquidity by repackaging big contract sizes from wholesalers and transforming them into small pieces. Without these types of brokers, it would be hard for the average everyday person to enter the forex world.
ECN brokers essentially match customer buy/sell orders at stated prices. These prices are put together from different banks, market makers, even traders within the ECN. Since these brokers have the ability to set their own prices, they will often charge a small commission fee for any of the trades you perform.
How We Can Help
We hope that this introductory lesson on forex and its history was of help to you. Here at Smart Prime Academy, we want to do everything within our power to help you fully understand and grasp the FX market. This is why, in addition to blog posts, we provide forex trading courses in Richmond Hill. From beginner to pro, we have a knowledge base for practically everyone. To learn more about how our professional forex team can assist you, be sure to call us at 1-877-870-0092 today!