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Retail foreign exchange trading Review

"Retail foreign exchange trading is a minefield of potential financial pitfalls, with many traders losing money in the long run despite promises of quick and easy profits." But is it really as risky as it seems?

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Overview of Retail Foreign Exchange Trading

Retail foreign exchange trading, also known as FX trading, is a popular way of speculating on global currency markets. It has become increasingly popular over the past decade due to the emergence of online trading platforms. Retail foreign exchange trading involves speculating on the movements of different currency pairs, without taking physical delivery of the currencies.

Pros and Cons of Retail Foreign Exchange Trading

The main advantage of Retail foreign exchange trading is that it allows traders to speculate on the movements of different currencies in a relatively straightforward and cost-effective way. In addition, FX trading is highly liquid and there is no need to take physical delivery of currencies. This makes it easy to enter and exit positions quickly. However, one of the drawbacks of FX trading is that it carries a high level of risk. Currency markets are highly volatile and can move rapidly in response to news events or economic data releases. This means that traders need to be aware of the risks associated with FX trading, and ensure that they manage their risk effectively. In addition, some online trading platforms may not be regulated or may offer inadequate investor protection.

Founders of Retail Foreign Exchange Trading

Retail foreign exchange trading was pioneered by a number of financial institutions in the 1990s, including Global Forex Trading (GFT), TradeStation and E*Trade. These companies were among the first to offer online trading platforms for retail foreign exchange traders.

Public Opinion

The public opinion of Retail foreign exchange trading is generally positive. Many people view FX trading as an accessible way to speculate on global currency markets. However, there are also those who view FX trading as a high risk activity that should only be undertaken by experienced traders.

Newsworthy Events

In recent years, there have been several newsworthy events related to Retail foreign exchange trading. In 2016, the European Securities and Markets Authority (ESMA) introduced new regulations limiting the amount of leverage available to retail traders on certain European Union markets. In addition, in 2019 the UK's Financial Conduct Authority (FCA) launched an investigation into allegations that some retail FX firms had been offering clients unauthorised advice and services. The FCA also issued a warning to consumers about the risks associated with FX trading.