The Global Foreign Currency Exchange Market (Forex) is the world's largest and most liquid financial market. Companies, fund managers, and banks can buy and sell foreign currencies in varying amounts.
Trading takes place virtually 24/7 via phone, Internet, and fax. Currently, over $1.5 trillion is traded daily in various currencies. By comparison, the New York Stock Exchange would require approximately two months of trading volume to reach this daily Forex amount.
On average, nearly 25% of the amount traded is attributable to online transactions, up from 15%in 2000 (Greenwich Associates, March 20 2002 Survey “Global Surge in Electronic Foreign Exchange Uptake”).
Over the last 12 years, the Forex market has been growing an average of 23% annually (Bank for International Settlements, 2000). This explosive growth may be attributed to globalization, economic measures that integrated national economies (e.g., NAFTA), advancements in computer and telecommunication technologies, and the proliferation of new financial instruments such as Forex derivatives.
Online retail foreign exchange trading is a nascent market with strong potential to revolutionize the entire financial services industry. Equal Trading is a leading provider of online foreign exchange trading platforms for small to mid-tier financial institutions, banks, and retail traders.
Foreign Exchange trading is overseen by the CFTC in the United States.
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