Why Aussie Traders Are Ditching Equities To Trade Foreign Exchange ...
By James Dunn at The Bull.com.au
Many traders have given up the sharemarket for the massive and deep Foreign Exchange market - but while it is similar, there are some traps for the unwary.
It was revolutionary enough when the internet opened up access to trading the stockmarkets – but the $US6.8 trillion-a-day foreign exchange (FX) market is a much bigger pond in which to fish.
Australia is one of the most active retail markets in trading FX: according to a recent report from research firm Investment Trends, 54,000 individual investors traded FX at leats once in 2011.
Even though FX traders represent just 0.30 per cent of the Australian adult population, it is a relatively large market, says Investment Trends, given that the equivalent figure in the UK is 0.14 per cent of adults, and in Germany it is 0.03 per cent.