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“If Forex is so lucrative then why many people are not interested in this?”
For non-institutional traders/investors (small capital)
This is a new market. The Forex hit USA in 2000 through GFT and FXCM the most.
The lack of confidence in stock market and relatively small returns to the size of the capital drove many people to look for trading/investment opportunities somwhere else. May be that’s why Forex gained more popularity ?
In Europe the Forex was already a good few years in advance and popular. Traded by many small traders/investors since 1992. Saxo (1992), MGforex(1992), CMC(1996) just to mention a few.
I agree with the Mishak’s statement:
“The market is not so easy manipulated by powerful individuals”
Because it’s not. What makes impression that is volatile is the leverage.
The percentage change of any pair is microscopic compare the stock market.
As a mater of fact trading stock market (daily/swing) having less then $40 000 of capital is impossible. Not to mention a dozen of regulations. Just to prove to the masses that long term investment is the way to go. Then we buy a stock and wait 20 years taking 100% profit. Sure we will.
Hence the Stock Market is for investors rather active traders.
I like your humorous comment Pete:
“The advantage of trading stocks over FX? It takes longer for them to lose their savings”
Well … Actually, if you would trade Forex with the same margin/leverage …Forex would take longer time to lose their savings. You just need to set your leverage 1:2 or don’t trade on leverage :-)
Back to the main question.
One time I accidentally ended up on one of the financial forums (IRC). After a while I realized it’s not a Forex related, so I asked the question if there is anybody who trades Forex?
One of the members said: “Never heart about Forex”
The other member: “I don’t have this symbol, are you trading OTCB?”
I apologized and left the forum.
That may give some idea how popular is Forex.
Regards,
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