So more people are getting into Currency trading. Is that good or bad for the market? The future will tell. The Wall Street Journal reports that retail Forex trading has surged.
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Currency brokers that cater to retail investors almost doubled their share of trading volumes in the foreign-exchange market last year, amid a retrenchment among hedge
funds.
Foreign-exchange brokers that handle the lion’s share of retail trades—known in the industry as “retail aggregators”—accounted for 18% of volume in the $4-trillion-a-day currency market, compared with 10% in 2010, according to the latest annual survey by consultancy Greenwich Associates.
Source: http://online.wsj.com/article/SB10001424052702304818404577345842145816520.html
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That is a huge jump, almost doubling since 2010. I found an article on Marketwatch.com that says this maybe because of technology improvements. See what they have to say here.
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An improvement in trading technology across online and mobile platforms could be the reason for the latest figures showing a rise in trading volume within the US $4 trillion-a-day forex market.
Forex Trading
Forex trading provider City Index first released its mobile trading application, City Trading, back in 2009 and just recently launched its FX specific app called City Trading FX.
Such developments as these mirror The Wall Street Journal’s story on how currency brokers, catering to retail forex investors, almost doubled their share of trading volume in the forex market last year.
Quicker, Easier, Cheaper
Trades placed by retail forex investors, such as those trading forex with City Index, accounted for 18% of the forex market’s volume in 2011 – an 8% improvement on the previous year, according to an annual survey by Greenwich Associates.
Former investment banker, Peter Pham, told The Wall Street Journal: “Ten or 12 years ago, if you wanted to place a trade, you would have to speak to a broker, and sometimes that would mean missing moves.”
Pham goes onto say that ‘better technology means there is a wide range of online brokers vying for business, making it quicker, easier and cheaper to place bets’.
Source: Marketwatch.com
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What are your thoughts? Did you just start Forex trading? Do you trade more now then before? Leave your comments below.
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