A letter to a friend

I have a friend who lives in Jakarta, Indonesia. He asked my opinion about firms which draw people of his country into the Forex market. Here’s a brief extract from a letter I wrote him:

"On any professional website providing Forex services, you’ll read that the value of the international market is trillions of dollars, what the major currencies are…., etc. This is true. The global foreign exchange market called the Interbank, and the biggest players are the major banks and governments. Transactions occur frequently. So much so that the involvement of a third party becomes necessary. These third parties number in the thousands, and – to put it politely – aren’t always the sharpest tools in the shed. The brightest crayons in the box. However you spell it out, these people aren’t working in London’s Barclay, with access to key market analysis and information using professional trading terminals. These third party individuals hail from Indonesia, Southeast Asia, and poor parts of the world. And why not? Their $500 aren’t at risk on the Forex market. So they settle into companies that provide Forex services.”

But we’ll discuss that more in depth in my next post. Until then, be careful who you trust with your trading!