Next on the ladder are the hedge funds, corporations, retail m | Daniel Education

Next on the ladder are the hedge funds, corporations, retail market makers, and retail ECNs.

Since these institutions do not have tight credit relationships with the participants of the interbank market, they have to do their transactions via commercial banks.

This means that their rates are slightly higher and more expensive than those who are part of the interbank market.

At the very bottom of the ladder are the retail traders.

It used to be very hard for us little people to engage in the forex market but thanks to the advent of the internet, electronic trading, and retail brokers, the difficult barriers to entry in forex trading have all been taken down.

This gave us the chance to play with those high up the ladder and poke them with a very long and cheap stick.

Now that you know the forex market hierarchy, let’s go next !