The History of Forex

Created by.. ANCIENT TIMES A form of currency has been around for a very long time, ever since merchandise was first exchanged. FTW 5,000 Forex Training Worldwide years US ADOPTS GOLD STANDARD Considered to be the source of modern foreign exchange. E GOLD STANDAR FX HOLDINGS GROW BANK OF ENGLAND ARRIVES Created by Scottish businessman William Paterson. Holdings of countries foreign exchange increased by 10.8% gold by 6.3% 1816 1860 - 1913 1902 1694 1879 1899 - 1913 LONDON SURGES Number of foreign banks in London GOLD STANDARD increased from 3 to 71. LONDON BROKERS Gold becomes a fixed value for trading commodities. Only 2 foreign exchange brokers in London. 1 GBP =123.27 grams of gold. LONDON BOOMS Number of forex firms 1913 MONETARY COOPERATION Creation of the IMF - now an increases to 40. STERLING RULES THE WAVES organisation of 188 countries. Nearly half of the world's forex transactions used sterling. 1945 1939 1914 1944 1924 BRETTON WOODS SYSTEM Second World War leaves Europe in IN BILLIONS financial ruin. USA remained START OF WORLD WAR 2 START OF WORLD WAR 1 relatively untouched. US Dollar becomes the global reserve Here we go again. And so begins the devastation. currency, other currencies benchmarked against USD. 19730 FLOATING EXCHANGE RATES Countries free to peg or float TECHNOLOGY AR means less dependency on USD. Reuters introduces computer monitors and replaces telephones and telex. NIXON SHOCK Bretton Woods ends. USD UK HANGS ON becomes fiat currency. >25% of all trades world-wide 1976 were within the UK, USA in second place. 1973 THE GAME CHANGER Internet arrives. Participation in OUT OF MONEY West German government aquires 3 billion USD. Some European markets 1987 the forex markets meets the DIY investor - turning the fx market into what it is today. 1989 1998 forced to closed for weeks. 1994 SILLY NUMBERS BEGIN Daily global forex markets BIG NUMBERS START turnover 2012 TOP CURRENCY TRADERS reaches Daily global forex markets turnover reaches $620 billion. $1.7 trillion. 2002 25.0 % ENTER THE EURO So begins the time of the Euro. Becoming the 2nd most traded currency. 20.0 % 2010 16.0 % 2012 13.0 % MODERN VOLUMES 5.0 % Daily global forex markets turnover reaches $3.98 trillion. PRESENT DAY SHARE OF TURNOVER BY VALUE TRADED Algorithmic Trading BETWEEN 5 RETAIL COMPANIES 37 % High-frequency Trading 18 % GROWTH OF FOREX RELATED INTERNET TRAFFIC SEARCH TERMS AND MONTHLY SEARCHES 1,000,000 "FOREX" 823,000 500,000 "FOREIGN EXCHANGE" CURRENCY DISTRIBUTION OF SPOT TURNOVER 165,000 GBP 7% All others 7.5 % * JPY 10 % FOREX TRADING" EUR 23 % 74,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 USD 40 % Created by. FTW ©2013 Trader Training Worldwide Ltd www.forextrainingworldwide.com Forex Training Worldwide *MONE INTE FUND* Goldman Sachs 3.1 % Morgan Stanley 3.5 % Credit Suisse 4.6 % RBS % 8'S JP Morgan % 9'9 6.7 % HSBC 10.4 % JBS AG Barclays % 6'0L 12.2 % Citi Group o Deutshe Bank 14.5 %