Retail forex

Retail Forex is a subdivision of the Foreign Exchange market. It is therefore much smaller than the Foreign Exchange market. Retail Forex refers mainly to Online Forex trading, which today, is the most practical way for an individual to trade Forex. Trading in the Foreign Exchange market is not something new, however, online retail Forex trading is. It’s been existing for about a decade now and it only keeps on developing further and further year after year.

The main characteristic of retail Forex is that it is a way for individuals—whether new to the Foreign Exchange market or experts in it—to buy and sell currencies very quickly. Positions can be opened, and closed seconds later. Also, retail Forex has bypassed the traditional broker-investor relationship as many Internet-based trading firms offer their trading platforms without the intervention of brokers and/or dealer. Furthermore, it is common that in retail Forex, clients will be offered high amounts of leverage. Financial instruments in Retail Forex include: Forwards, Futures, Swaps, Spot.

While in a way Retail Forex has democratized trading on the Foreign Exchange market, it has been claimed to have a negative effect on it as retail traders oftentimes easily lose money.