A Brief History of Forex

Since the Forex markets have no central location and conduct business using various electronic platforms investors in the UK enjoy the same opportunities as traders around the globe. Forex opportunities can be accessed from anywhere with internet service. Historically modern Forex markets came into existence with the Bretton Woods agreement which established rules for commercial and financial transactions between industrialized nations. The Bretton Woods agreement was instrumental in the reconstruction of Europe after World War Two.

In the early 1970's the gold standard was abandoned and currencies were allowed to float freely. By the 90's various policy changes allowed small investors to enter this lucrative market. Today Forex trading is popular in both Europe and the United States and the UK is no exception. Forex markets are the largest in the world with approximately 2 trillion dollars US traded daily. No longer the exclusive domain of large banks and corporations, Forex markets now provide astounding opportunities for the average investor.

Forex Opportunity for Small Investors

The average Forex investor may enter this amazing market for surprisingly little money. Today participants in Forex markets include multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.

Forex Opportunities in Europe

In the UK London dominates the Forex markets in the UK. The UK foreign exchange markets account for almost one third of global turnover and is expected to edge higher. Since Margaret Thatcher's government abolished restrictive exchange controls in 1970 citizens of the UK have been allowed to take advantage of Forex opportunities.

The availability of Forex opportunities is the same in the UK as anywhere else in the world. The opportunities offered by Forex markets are:

Leverage-A small investor can control and move a lot of currency for a minimal investment through margin trading.

Trade is 24 hours a day

Conversion rates are constantly trading creating Forex opportunities daily.

Investors are not limited to any lot size and any amount of currency can be traded.

Transaction fees are low and there are no commissions.

These are only a few of the advantages of trading Forex. One of the most attractive features of the Forex markets is the availability to trade on margin and mitigate risk. If the margin is 100:1 an investor can control $100,000 (USD) in actual currency for an investment of $1,000(USD). Risk mitigation takes place through the use of market orders, limit orders, and stop loss orders.

Availability of Forex Opportunities

Like anywhere else Forex opportunities are available to small investors in the UK. There are many learning platforms where potential Forex investors may trade currencies in real time and learn the Forex market without investing real money. The Forex opportunities are astounding for small investors and can offer returns that stock markets cannot match.