How Do Individual Traders Fit In On The Forex Market

The short answer to this question is: they don't. Not on their own. Individual traders like you and I are known as “Retail Traders”, and must go through retail brokerage firms in order to buy and sell currencies on the foreign exchange market.

You should know up front that online retail trading by individuals (represented by online retail brokers) is still in its infancy. Prior to the Internet, and subsequent availability of real-time market data, it was virtually impossible for the average person to get involved in the foreign exchange market with any degree of success.

Today, however, you can buy and sell currencies at the click of a button, in much the same way as you buy and sell stocks. Everything has been automated and linked up electronically.

In the interest of full disclosure, you should also know that Forex trading is not as straight-forward as trading stocks on the stock exchange. There are many, many variables to take into consideration when it comes to determining fluctuations in currency values. There is a lot of 'jargon' to learn, and a fair share of complex concepts which must be mastered.

Unfortunately, there are unscrupulous companies out there who take advantage of this 'learning curve', and attempt to scam would-be retail traders. Forex opportunity scams are still prevalent - some estimates place the number as high as 90% .

Therefore, it is imperative that you learn the basics of Forex before you get involved with any 'advanced' training courses, trading systems or online brokers!

While a full crash course on Forex is beyond the scope of this report, you will learn the basics here. I can't make you an expert, but I can give you the knowledge you need to make an informed decision about whether to get involved - and whether the retail broker you're dealing with is on the up and up.

 Basic Forex Concepts and Terms

 

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