Forex Trading & Money Advice

Before you embark on the road to becoming a Forex trader, it is worth knowing some of the history of Forex. Without trawling back into all the reasons behind Forex, it is sufficient to know that the modern online Forex history begins in 1973. Even though trading in currencies has-been around since the times of ancient Egypt, when,  at that time, the market was extremely primitive, and there were no advance trading tools as today’s  Forex trader is able to access.

Coins were around at the time of ancient Egypt and the Pharaohs, later the Romans introduced the aurous followed by the denarius both of which had worldwide use, making them the first global foreign currency coins. After the Second World War the Bretton Woods System was agreed to stabilise currencies with the U.S. Dollar becoming the new global reserve currency, and remained so throughout the rest of the Forex history. This was agreed upon in the Bretton Woods conference, when all of the other foreign currencies were pegged to the USD, and a new international financial network was formed.

By 1973 the Bretton Woods agreement was abandoned and free floating exchange rates came into being as the UK became the first country to float its currency, the Pound Sterling, soon to be followed by other European countries. Online currency trading was introduced in 1994 and gave rise to a number of European countries joining together to form a universal currency known as the Euro and by 2002 this Euro became the official currency for 12 European nations, and in the past few years more nations have joined this agreement. Since the major currencies were floated, foreign exchange trading has developed into the largest global market by far. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.