Francesc Riverola,
As one of the the guys commenting on this article said, I found it “…rest of the article is exaggerating the issue and may be making a mountain out of mole hill.”
What do you think?
Does the author have a point or does he get things out of context?
Francesc
The $100bn FX hustle
By Paul Murphy
FT Alphaville
$100bn — that’s the daily figure for trading volume in the retail foreign exchange market, where amateur plungers play the dollar and the like.
The IPO prospectus for Gain Capital, one of the scores of firms tapping into this area of explosive growth, sets out the juicy business on offer (emphasis FT Alphaville’s):
“Foreign exchange, or forex, trading is one of the fastest growing areas of retail trading in the financial services industry. According to its most recent report, the Aite Group, a financial services industry market research firm, reported that by the end of 2008, average daily trading volume in the retail forex market reached approximately $100.0 billion, a 900% increase from 2001. Our total annual customer trading volume, which is based on the U.S. Dollar equivalent of notional amounts traded, grew from $120.3 billion in 2004 to $1.49 trillion in 2008, representing a compounded annual growth rate of 87.6%…”
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