The rise of the Foreign Exchange sector is a relatively recent phenomenon. It was in the beginning of the 1970s when countries replaced the exchange rate regime which had been in place as per the Bretton Woods agreement till 1971 with a novel, 'floating exchange rate' system.

Over the decades, the forex market grew rapidly. The Bank for International Settlements stated a traditional daily turnover as high as USD 3. 2 trillion in the year that ended in April 2007. Statistics reveal that the FX output registered in between 2007 and 2008 shows a 41% growth. The market will only grow further with the trade becoming known to people in a variety of ways.

The foreign exchange stands as one of the most fluid and the biggest markets in the entire world. The transactions that happen in FX market are between big banks, the apex banks of nations, multi national corporations, governments of countries themselves, other financial establishments and currency speculators. But the fact remains that very few are aware that any individual in he planet who has a computer with internet connection can get into the forex trading business. One can start with any amount of money, be it a small sum or large sum.

It is the presence of many countries with diverse currency systems that facilitate foreign currency trade by foreign exchange. FX markets facilitate trade. It also boosts investment leading to growth. The exchange market has an immense economic significance in the day-to-day life of people.