Currency trading has been around sine Egypt’s advent of the coinage, but today’s Forex trading market began in 1973. The post World War II alterations of the international exchange rate is more relevant to today’s market. The United States was left unharmed by this war, at least it was when you compare it to the European powers.  The US dollar became the currency of choice as it gained worldwide confidence. It was the Bretton Woods System that would prevent a recurrence of the depression and was ratified by the major capitalist countries.

This arrangement went on for thirty years and in the early seventies, with lack of confidence, the strength of the dollar led to currency values that were market driven. This is when a new system of exchange rates took effect. Out of this came the Forex market.  The advantage of this type of market is the liquidity, 24-hour Forex trading, no bear market and high leverage, low margins.

There is also low transaction costs and small study sample. Unlike the stock market that give you thousands of choice options, this market offer just seven major currencies. Many successful traders will stay with just three for four currencies to trade with.