13 Forex Industry Facts Every Investor Must Know:
The currency market is the most popular trading place in the world, with the top reason being – it is open 24 hours a day in some of the other parts globally. Although the popularity has surged in recent times only, the market is operating since ages. The Internet has played a significant role in it. It is a no brainer that most trades are now executed online, and the frame of busy exchanges, people doing a lot of phone calls, have become a dream now.
Notably, there are a lot of exciting forex industry facts, and here, we’ll discuss 13 of them which every trader must know.
13 Fun Forex Industry Facts To Note
- The UK is the World’s Forex Trading Hub: Most people have the preconception in their minds that most transactions in the world might be occurring in the USA. However, it is the UK which stole the game here. Around 19% of currency trading transactions happen in the US as compared to the UK, which takes around 40% of trades globally.
- 10M Traders: The craze of currency trading can be estimated by the fact that there are more than 10 million forex traders globally, with some regions having more while other areas have low density.
- Talmudic and Forex Connection: Currency trading might be older than you think. The first currency transaction occurred in Talmudic writings, where the traces of international money changers have been found. These changes used to aid traders to change currencies in exchange for a commission.
- The Cable Currency: The currency pair GBP/USD is also known as the Cable in the foreign exchange. The reason behind it was – until the fibre cables and satellites were discovered, the NYSE and the London Stock exchange were connected through a massive wire steel cable which was spread under the Atlantic.
- Greenback is the most traded currency: Greenback, or the US dollar, is the most traded foreign currency in the world, covering almost 80% of all trades. The total volume of all trading currencies is valued at $5 trillion a day, and $4 trillion worth of trades are in the greenback.
- Currency trading only for banks: There was a time when forex trading was not available for everyone. Banks and institutions having liquid funds of more than $40 million to $60 million were allowed. However, today any individual with any amount can go in the currency market.
- Overseas US Currency: More than 66% of the total US currency in the world is outside America and is held by foreign institutions and governments.
- Most traders are young: About 45% of all the forex traders in the world are aged between 25 and 34.
- Most Traders Speculate: Around 90% of all the currency traders in the world speculate over the prices, and only 10% work with analysis.
- Zimbabwe Hyperinflation: Generally, it is believed that foreign pairs and exchanges are slightly volatile. However, in 2009, Zimbabwe witnessed hyperinflation with its currency rates, reaching 6.56 sextillion per US cent. The result – the nation abandoned its currency and used other national bills until 2014, with limiting the public bank withdrawal to 500,000 Zimbabwe dollars, which is US$0.25.
- First Paper Money: The first paper currency was created some 1400 years back in China.
- Tea as a Currency: Until WWII, tea was a currency with people exchanging goods in China, Mongolia, Tibet, and Central Asia.
- Loonie & Toonie: Every currency trader is aware that a Canadian dollar bill is also called the loonie. However, the two Canadian dollar coins also have a name, i.e. toonie.
So, these were the most interesting forex industry facts. The lucrative currency market has given the world a lot of millionaires and still carries high potential. However, make sure to not fall in prey of fraud brokers; only choose genuine ones like Oinvest.
Oinvest is a forex and CFD trading brokerage firm which offers several products and services at a low price. The company is an FSCA (Financial Service Conduct Authority) regulated firm and provides a free demo account to its users for practice.
However, if you are still confused, then read the Oinvest broker review here, or choose some other good broker from the list.