#1 History of Forex(Foreign Exchange)

Forex come from word Foreign exchange. For simplicity Foreign currencies are define as currencies that constantly and at the same time bought and sold across local and global markets. Furthermore traders’ investments increase or decrease in value based upon currency movements.

Before World War I, nearly all central banks supported their currencies with convertibility to gold. Although paper money could always be prefer to be change for gold, in some cases this did not happen often, fostering the sometimes ruinous notion that there was not essentially a need for full cover in the central reserves of the government.

Before 1996,Forex market is open only to experts exclusive, including bank institution, High Net Worth Individual and Conglomerates multi millionaire because to entry the market one individual need about 10 million USD, because of that Forex is not very popular among Low Investment’s individual for that time because of high capital funding. Daily amount of a commodity is also under 500 million USD.

In early of 1996 ,Forex is open to public after been passed by the President of America, Bill Clinton at that time. Since that, many broker Forex registered and the amount of merchandise increase every year. Now, approximately 2.5 trillion USD was trade daily.

Now, the number of broker registered keep increasing daily and because of the competition between them the minima capital to entry trading become smaller and smaller. There are some broker even offer 1 USD as a minima capital to entry trading nowadays.