If you’re asking when forex started, the modern foreign exchange (forex) market began in 1973, following the collapse of the Bretton Woods system. This event marked the shift from fixed exchange rates to a floating currency system, laying the foundation for today’s decentralised, global forex market.

Key Milestones In The History Of Forex

1. Pre-20th Century: Barter And Gold

• Ancient civilisations exchanged goods or used commodity money like silver and gold.
• The gold standard was adopted in the 1800s, pegging currencies to gold reserves.

2. 1944: Bretton Woods Agreement

• After World War II, 44 countries agreed to fix their currencies to the US dollar, which was backed by gold.
• This system created stability, but reduced market flexibility.

3. 1971–1973: Collapse Of Bretton Woods

• In 1971, the US suspended dollar convertibility to gold.
• By 1973, major economies allowed their currencies to float freely, leading to the formation of the modern forex market.

4. 1990s: Retail Forex Emerges

• With the internet and electronic trading platforms, retail forex trading became accessible to individuals.
• Platforms like MetaTrader 4 (launched in 2005) revolutionised access for small traders.

Modern Forex Market Today

• Trades over $7.5 trillion per day
• Open 24 hours a day, 5 days a week
• Involves currencies from every corner of the world
• Includes central banks, institutions, and retail traders

Conclusion

If you’re asking when forex started, the modern forex market began in 1973 with the adoption of floating exchange rates. Since then, it has evolved into the largest and most liquid financial market in the world, driven by technology, globalisation, and constant innovation.

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