Who Invented Forex Trading?

Forex trading, also known as foreign exchange trading, does not have a single inventor. Instead, it evolved gradually as international trade and economies developed over thousands of years. The roots of forex trading can be traced back to ancient civilizations like Mesopotamia, where people first began exchanging different forms of money to trade goods. Later, gold and silver coins became common mediums of exchange, helping shape early currency systems.

Modern forex trading began to take form in the 19th and 20th centuries. One major milestone was the Gold Standard, where countries fixed their currencies’ value to gold. This system helped stabilize exchange rates but limited flexibility. After World War II, the Bretton Woods Agreement (1944) created a structured global currency system, tying many currencies to the US dollar.

However, true modern forex trading started in 1971, when the United States abandoned the gold standard. This led to floating exchange rates, meaning currency values could move freely based on supply and demand. Banks, governments, and financial institutions began actively trading currencies, and the forex market was born.

With the rise of the internet in the 1990s, forex trading became accessible to individual traders worldwide. Today, forex is the largest financial market in the world, operating 24 hours a day and driven by global economic activity.

In short, forex trading wasn’t invented by one person it evolved with global trade, money, and technology.