Forex Trading Beginners – How Individual Traders Fit Into The Market
The short answer to this question is: they don’t. Not on their own. Individual traders like you and I are known as “Retail Traders”, and must go through forex brokers in order to buy and sell currencies on the forex market.
Online retail trading by individuals (represented by online retail brokers) is still in its infancy, relatively speaking. Prior to the Internet, and subsequent availability of real-time market data, it was virtually impossible for the average person to get involved in the forex market with any degree of success.
Today, however, you can buy and sell currencies at the click of a button, in much the same way as you buy and sell stocks. Everything has been automated and linked up electronically.
As with trading stocks on the stock exchange, there are many, many variables to take into consideration when it comes to determining fluctuations in currency values. There is a bit of ‘jargon’ to learn, and a share of concepts which must be mastered.
Unfortunately, there are unscrupulous companies out there who take advantage of this ‘learning curve’, and attempt to scam would-be retail traders. Forex opportunity scams are still prevalent – some estimates place the number as high as 90% .
Therefore, it is imperative that you learn the basics of Forex before you get involved with any ‘advanced’ training courses, trading systems or online brokers!
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