FOREX

To facilitate transaction in foreign securities, there are investment management firms who manage pension funds and endowments on behalf of their customers on large accounts, for this they use foreign exchange market. They have speculative specialists who manage the currency of their clients in such a way that they get more profit and the risk is limited. These specialists are also of two kinds; first one is a specialist who has a quite small firm, while the other one can do large trade as they have large value of assets under management. Retail traders are also there in the foreign exchange market or in Forex trading; these retailers are individuals who play an important role in the market. These individuals are growing segments. These traders have to participate in the market through brokers or banks. They cannot trade directly in the foreign exchange market. Retail brokers in USA, in the past had periodic foreign exchange scams, so are regulated and controlled by the CFTC and NFA in USA. Because of which stricter requirements were imposed on the brokers by the NFA and CFTC. Due to this imposition many small brokers are gone from the market. Brokers are the agents of the customers in the market.