As Wall Street is the epicenter for stocks, London Square is the home of currency trading. The Forex market has no governing body, except for the Financial Services Authority (FSA) of England. The scope of currency trading expands over the entire globe, yet there is only one regulatory body.
The United Kingdom's foreign exchange averages over $700 billion worth of transactions every day. With such a huge amount of cash exchanging hands among so few financial instruments, it's more difficult for institutional investors to influence the currency market. In comparison, major institutions can step into the stock market and literally cause a stock to tank or explode. As a common investor, you are always exposed to institutional behavior.In the Forex market, the daily volume is too large for institutions to manipulate prices. Therefore, it's arguably a fairer market for the little guy. That's not to say it's a level playing field. Institutions have more manpower, more capital, and more technology.Although you may not have the same tools as institutions, you do have competitive advantages. Most importantly, you only have to answer to yourself. Many investment decisions have to be passed among bosses before any significant trades are made at institutions. While they are caught up in corporate bureaucracy, you can exploit the market.
