The foreign exchange market has existed since ancient times. Exchange systems have occurred around 8 thousand years ago and have undergone significant changes and developments before such a niche as Forex market emerged.

Financial technology

Forex markets were able to attain trillions in trading per day in the 21st century. Although the rapid development has been accounted for the 20th century, the figure of more than 5 trillion USD seemed inconceivable. Why such figure has been reached? The answer is – FinTech.

Financial technology transformed the FX market by bringing online banking, the Single European Act, the UK’s Big Bang Movement, and, person-to-person Forex trading. Owing to FinTech, Forex market became available not only to a few brokers but to everyone who wants to participate in trading.

Policy change

It is no surprise that policy change has always had a significant impact on the foreign exchange market. It’s scope and strength heavily depend on relevant policies.

The so-called Big Bang movement is one such example. This notable policy change set London as one of the global financial capitals also altering the character of FX market.

The effects of such policy changes as Bing Bang are always dramatic, so having an understanding of the policies is a great way to prepare for changes that may occur in the future.

Blockchain and Crypto

Cryptocurrencies and Blockchain technology certainly are taking many industries further. Forex industry is not an exception. Crypto technologies are just beginning to transform the foreign exchange market. Blockchain will have a huge impact on Forex by revolutionizing the efficiency and security of the market.

What’s next?

Apparently, Forex market will be contingent on the policy regulations and technology developments.

Today, several countries have banned Forex trading closing the path to trading opportunities. For example, FX trading is generally barred in China with the rare exception of personal exchanges. Imagine how Forex market would soar if China was to regulate and formalize the market.

And of course, individual markets and government policy, coupled with user-friendly and secure technology, will greatly impact the future of Forex.