When Retail Traders Entered Forex

The forex market has been around for decades, but for a long time, it was dominated by banks, governments, and multinational corporations. Individual, or retail traders, had very limited access because trading required large amounts of capital and complex systems.

This began to change in the late 1990s, with the rise of personal computers, the internet, and online trading platforms. Brokers started offering accounts to individuals, allowing retail traders to buy and sell currencies from home. This democratization of forex trading made it possible for anyone with a computer and an internet connection to participate in the global currency market.

Retail traders could now access real-time exchange rates, charts, and analysis tools, which were previously only available to large institutions. The introduction of leverage also allowed small investors to control larger positions, increasing both potential profits and risks.

Today, retail traders are a significant part of the forex market, accounting for a smaller but growing percentage of total trading volume. They trade for speculation, hedging, or even as a career. Platforms like MetaTrader, Forex.com, and Interactive Brokers make trading easier and more transparent, helping individuals navigate the complex world of global currencies.

In short, retail forex trading truly began in the internet era, opening the world of currencies to everyday investors.