Forex, an interbank trading to a global online development

Since the 1970s, before the globalization of world trade, international financial transactions became much more common, this, compared to the previous 50 years. This phenomena was slowly transforming the foreign exchange or forex market, not only in terms of volumes traded, but also in its structure, function and method of transacting. Within the major structural changes of the currency market, we can mention the following:     a-Deregulation exchange and financial market Several states throughout the world, eliminated controls and the implementation of a command economy. The current rules on economic issues are only carried out to stimulate sustainable economic growth, and thus revitalize the financial system. This phenomena resulted in increased competitiveness, both domestically and internationally, especially between major financial institutions. b-Changes to the form of savings and investment, the affect of globalization Given this phenomena, financial institutions and mutual funds worldwide reached a greater role to their investment objectives. Besides the strategic vision of investment diversification, investments can be placed now nimbly among nations, and particularly the foreign exchange market effectively achieves these purposes.   If in our world exists only one world currency, there would be no foreign exchange or forex market. However, our reality is completely different because there are hundreds of sovereign states with a particular legal tender. So the forex market plays a key role in easing trade among nations. No exchange or forex market, there would be another mechanism to determine payments or currency prices, which should make individuals and institutions that import and export goods and services.     During the passed two decades, the foreign exchange market or forex was largely determined by the influence of banks, interbank trade dominate, as these entities were who played the leading role in the foreign exchange market, supply and demand channeling in that market.     However, with the liberalization of exchange rates and global financial system, the forex market has expanded exponentially rite. At first, as we stated banks were the main operators in the market, but slowly the forex market was expanding to include larger groups such as brokers and pension managers, mutual funds and financial firms different nature. Before the development experienced the forex market, the competition began to emerge, and several institutions began to offer possibilities for operations and foreign currency transactions to millions of investors.     Technological development by the emergence of Internet benefited greatly forex market expansion. Given the degree of competition achieved several brokers began to offer very low cost to operate. This technological progress also achieved the same financial institutions to reduce their costs, and in this way is it possible the supply of various services at minimal cost to investors.     The ability to operate on the Internet to make transactions in real time, and access key information about major market events. The forex market, however, continues to evolve and continue to evolve in surprising ways.