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History of the Foreign Exchange Market

Nick
September 20, 2019
by Nick Alexander,

Article Recap

At the end of World War 2 all major currencies where pegged to gold, this was an international pact adopted at a conference held at Brenton Woods.

The Foreign Exchange Market 

At the end of World War 2 all major currencies where pegged to gold, this was an international pact adopted at a conference held at Brenton Woods. This would later become the informal name of the system. Initially this stabilized exchange rates, but as world economies developed in the post war era and gold prices became increasingly expansive the system became untenable. In 1971 the system was effectively eliminated allowing exchange rates to float freely.

The 1990’s heralded the arrival of the internet as its use became main stream banks and companies created online networks to produce automated quotes. Advancing technology and regulation allowed a new category of brokers to emerge. These brokers enabled individuals to trade Forex for the first time. Forex brokers can now be found in every corner of the world and account for a meaningful segment of daily foreign exchange volumes.

Read our guide on how to start trading forex here. To practise trading FX try Eightcap’s free demo trading account.

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