Growing market

The new online forex dealers are essentially filling a gap between the institutional interbank market and exchangetraded futures markets. This industry is still young, and regulatory changes and other developments may transform it significantly in years to come.

“The learning curve in FX is different than in stocks,” says Tradesight’s Mercer. “There, you can fall back on waiting for the market to change. With FX, you can’t say, ‘I just dropped a bunch of money, but oh, the dollar will come back.’ FX forces you to educate yourself before diving in. And you’ll never get married to a particular trade.”