If you’re asking where did forex trading start, the origins of foreign exchange trading trace back to ancient times, but the modern forex market as we know it began to take shape in the 20th century, particularly after the collapse of the Bretton Woods system in the 1970s.

1. Ancient Origins: Early Currency Exchange

• Barter systems were used thousands of years ago, eventually replaced by coins made of precious metals.
• As international trade grew, merchants across Egypt, Greece, and the Roman Empire began exchanging currencies informally based on weight and value.

2. The Gold Standard Era (19th to early 20th century)

• In the 1800s, countries began fixing their currencies to gold to stabilise international trade.
• This allowed for predictable currency exchange but lacked flexibility during economic crises.

3. Bretton Woods Agreement (1944)

• After World War II, 44 allied countries met in Bretton Woods, USA.
• They established a global monetary system where currencies were pegged to the US dollar, and the dollar was pegged to gold at $35/oz.
• This created the first semi-global foreign exchange framework.

4. Collapse Of Bretton Woods (1971–1973)

• In 1971, US President Richard Nixon ended dollar-gold convertibility.
• By 1973, major world currencies began to float freely — their value was determined by market forces rather than fixed pegs.
• This marked the official birth of modern forex trading.

5. Birth Of Retail Forex Trading (1990s Onwards)

• The internet boom in the 1990s enabled online platforms like MetaTrader to give individuals access to forex markets.
• Previously restricted to banks and institutions, forex trading became accessible to retail traders worldwide.

6. Forex Today

• The global forex market now trades over $7.5 trillion daily.
• Major trading hubs include London, New York, Tokyo, and Singapore.
• It remains the largest and most liquid financial market in the world.

Conclusion

If you’re asking where did forex trading start, the practice began in ancient civilisations, but the modern decentralised forex market started in the 1970s, after the fall of Bretton Woods. Since then, it has evolved into a global, 24-hour market accessible to anyone with an internet connection.

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