Forex, a global Internet commerce

Since the 1970s, with the globalization of world trade, international financial transactions have become more common, compared to the previous 50 years. This phenomenon was gradually converting the currency market or foreign currency market, not only in terms of sales volume, but also in its structure, function and way of conducting transactions. Among the main structural changes in the currency market, we can mention the following:

Deregulation of the exchange and financial markets
Several states around the world eliminated controls and the implementation of a managed economy. The current rules on economic issues are only implemented in order to stimulate sustainable economic growth, and thus revitalize the financial system. This phenomenon has translated into an increase in competitiveness, both nationally and internationally, especially among the main financial institutions.

Changes in the form of savings and investment as a result of globalization
Faced with this phenomenon, financial institutions and the money market funds worldwide were more committed to their investment objectives. In addition to the strategic vision of diversification of investments, investment can now be placed slightly between nations, and in particular the foreign exchange market achieves these effects efficiently.

If only our world has a global currency, there would be no exchange market or currency. However, our reality is totally different because there are hundreds of sovereign states with special legal tender. Therefore, the currency market has a key role in facilitating trade between nations. Without market exchange or currencies, there would be no other mechanism to determine payments or exchange rates, which should make the individuals and institutions that import and export goods and services.

In the last two decades, the forex or foreign currency market was largely determined by the influence of the banks, which dominates inter-bank trade, since these entities were the ones that played the main role in the currency market, channeling of demand and supply in this market.

However, before the liberalization of exchange rates and the global financial system, the currency market has expanded to an exponential rite. In the first manifesto that banks were the main economic agents in the market, but little by little the currency market has expanded to include larger groups, such as pension brokers and managers, investment funds and financial corporations of various kinds. Before the development experienced by the foreign exchange market, competition began to emerge, and many institutions have begun to offer opportunities for operations and foreign exchange transactions for millions of investors.

Technological development with the emergence of the Internet has greatly benefited the expansion of the foreign exchange market. Given the level of competition achieved several brokers began to offer very low operating costs. This technological advance also achieved its financial institutions reduce costs, and thus provide several services are possible at a minimal cost to investors.

The ability to operate on the Internet allows transactions in real time and access to key information about the main events of the market. The forex market, however, anyone who continues to evolve and continue to develop by surprise.

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