If you were to ask people “When do you think Forex Trading started?”, you would get a hundred different answers and there’s a high possibility that all of them would be wrong. Although the modern-day Forex, as we all know it, is quite recent, having been around since the ‘70s, the first Forex exchange market appeared in Amsterdam in the 17th century and from there it spread worldwide.
The 17th century! Ample time to figure it out, you’d say. Yes, but also no. It so happens that many know what it is and how it works, at least at a basic level, but few are those who know whether it can be seen as a business or not. Let’s talk about it.
At its simplest, a business is any organization that makes money by professional, commercial and industrial means. You may have already gleaned some knowledge as to the answer to the question of whether Forex can be considered a business, but we should delve a little bit deeper into the issue at hand.
Theoretically, Forex doesn’t meet the requirements of a business, because most traders trade solely for themselves and they don’t need a company and employees to turn a profit. However, it can easily become one if traders choose to outsource their expertise in order to gain an even higher profit.
The Inner Workings of a Forex Business
Trading on Forex can be an insanely profitable enterprise (which is why a surreal amount of money is traded every day), but not everyone has the necessary know-how and time to make it work and, to add insult to injury, it’s no secret that it can be as risky as it is profitable, therefore people are reluctant to dive headfirst into it without some professional advisors on their side. And good for them.
If you already are an experienced Forex trader, you can work toward putting the foundation of a business just by advertising your prowess to private clients who want to invest through a proxy or broker such as yourself. There are thousands upon thousands of Forex brokers out there (you can find a comprehensive list on FX-List) and the market is far from saturated in this respect. Growth, of course, comes by taking up on more and more clients.
If, on the other hand, are just thinking of getting into Forex and making a business out of it, you should learn absolutely everything there is to know about the market.
Why Should I Work with a Forex Broker?
As we’ve mentioned previously, the exchange rates are incredibly capricious, but this doesn’t mean that their trajectories can’t be foreseen – they certainly can be forecasted by people who have watched them for years. In addition, growing a portfolio on your own can be tricky, because that is done by entering other markets, markets that you wouldn’t have access to as an independent trader, and that applies to pretty much all kinds of currency, from physical to crypto.
We hope this helped you to understand the business side of Forex trading.