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Chapter 2
Page
1
Foreign Exchanges Retail Dilemma
and
Solutions
Foreign Exchange is
the largest traded market in the world with daily volume estimated at 1.2 - 1.5
trillion per day. Yet of that total, a relatively small amount of volume is
conducted by the smaller/non-institutional investor. The main reasons
for this have included:
- Uncompetitive
Pricing (also referred to as non-transparent pricing),
- Unregulated
Markets which exposed clients to unscrupulous dealers and risks,
- A retail client base that has not been required to have a global investment
perspective,
- A retail client base that is uneducated to the fundamentals and risks of
foreign exchange.
These problems until recently have been compelling reasons for the
retail public to ignore this highly beneficial investment/trading
vehicle. Now, however, solutions have been found to help bring
foreign exchange trading to the retail client.
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