The foreign exchange market, or forex, is the largest financial market in the world, with an average daily trading volume of over $5 trillion. It is a decentralized market, where currencies from all over the world are traded 24 hours a day, 5 days a week. But who is the founder of forex? The answer to this question is not straightforward, as forex trading has a long and complex history.
Forex trading has been around for centuries, as people have always needed to exchange currencies when traveling or doing business with other countries. However, the modern forex market as we know it today has its roots in the Bretton Woods agreement of 1944. This agreement established the US dollar as the world’s reserve currency, and other currencies were pegged to it at a fixed exchange rate.
The Bretton Woods system lasted until the early 1970s, when the US government ended the convertibility of the dollar into gold. This led to a free-floating exchange rate system, where currencies were traded based on supply and demand. The first electronic trading platform for currencies, called Reuters Dealing 2000-2, was launched in 1987. This platform allowed banks and other financial institutions to trade currencies electronically, and it paved the way for the modern forex market.
One of the pioneers of electronic forex trading was Richard Olsen, a Swiss economist and entrepreneur. In 1996, Olsen founded OANDA, a forex trading platform that allowed retail traders to access the market. OANDA was one of the first companies to offer online forex trading, and it quickly became popular among individual investors.
Another important figure in the history of forex trading is George Soros. Soros is a Hungarian-born investor and philanthropist who made his fortune by speculating on currency markets. In 1992, Soros famously bet against the British pound and made a profit of $1 billion in a single day. This event is known as “Black Wednesday” and it is considered one of the most successful currency trades in history.
Soros’ success in forex trading made him a controversial figure, as some people accused him of manipulating currency markets. However, Soros defended his actions by saying that he was simply taking advantage of market inefficiencies.
In recent years, forex trading has become even more accessible to retail traders, thanks to the proliferation of online trading platforms and mobile apps. Today, anyone with an internet connection can open a forex trading account and start trading currencies.
In conclusion, the founder of forex is not a single person, but rather a collective effort of many individuals who have contributed to the development of the market over the years. While Richard Olsen and George Soros are two prominent figures in the history of forex trading, they are just a small part of a much larger story. The forex market continues to evolve and grow, and it is likely that new innovations and technologies will shape its future.
