History of the Forex Trading Market
Until the 1970s, the Forex market did not act like an enhanced, modern market, reacting to changes in supply and demand. Since then, all of this changed. The market became global and rates fluctuated, moving in response to market forces. Over the years the Forex market got bigger and bigger until it reached its current size.
In the past, the only real forces in the market were big commercial ones such as banks and big firms trading according to their business needs (for example, a company would hold Japanese yen if they had business activity in Japan). Things are different today – Forex is now extremely popular with private traders, large and small. Since the late 1990s, the rules of the game have changed, thanks to the Internet revolution. Banks, forex brokers, and financial companies now offer comfortable, simple, online forex trading platforms, which let ordinary people (medium and small players) trade the Forex market for themselves.