| There are a number of reasons why people who are | | | | software that makes money! What better |
| computer literate are more likely to invest in the | | | | bang-for-the-buck can you have than writing a |
| forex market than others. Of course, that doesn't | | | | money making software? |
| mean that fx financial products are not offered to a | | | | The human element - Many people think that robotics |
| plethora of clients, and many who do not even have | | | | and automation is somehow inhuman, whereas the |
| computers will invest in FX. However, the foreign | | | | reality is quite the opposite. Remember also, that it is |
| exchange markets provide opportunities not available | | | | humans who will be writing the software. Humans will |
| in other markets. For example: | | | | be maintaining the servers, and many other tasks |
| Investment size is irrelevant - You can invest $500 or | | | | associated with automatic trading. It is not a printing |
| $500 million in currency trading. Of course, the size of | | | | press by any means, and does not absolve human |
| your account may determine the psychology of your | | | | traders from doing their work. More than anything, |
| trading strategy, but there is no reason to treat small | | | | robotic trading takes out the tedious process of |
| accounts different than large accounts. | | | | picking perfect entry and exit points, streamlines |
| Open Source Community - Forex is more open than | | | | backtesting and analysis, and simplifies the process of |
| other markets, utilizing the fix protocal for example, | | | | portfolio building. It frees up traders time to work |
| or the Meta Trader platform, traders can develop | | | | with clients, and don't forget it takes a lot of work |
| their strategy without spending any money, which | | | | to make a strategy that consistently profits. |
| can be saved for their trading account. There are | | | | Room for more - We saw the .com bombs of the |
| many open source communities of other traders and | | | | late 90's, the day trading fad that fizzled out around |
| systems developers that share code, ideas, tools, | | | | 2001, and other tech start up failures. We have seen |
| and much more, through online portals like Money | | | | the success of Amazon and Yahoo, which really are |
| Tec and Strategy Builder FX. | | | | not all that revolutionary. Although it is convenient to |
| Automated Trading - Anyone in computers at least | | | | shop at Amazon, didn't we have mail order catalogs |
| appreciates automation. So many tasks in today's | | | | in the 80's? We have not seen much development in |
| world are automated we take them for granted. | | | | the investment and trading industry, which could be a |
| Your investment accounts should also be automated. | | | | very profitable business to be in. Of course, it's |
| Why rely on human traders that can be | | | | impossible to convince any industrialist of the |
| Online Business - The entire business process from | | | | potential for profit, but many programmers have |
| account opening to trade and withdrawal, is totally | | | | taken up forex strategy development as a part time |
| online. Of course brokers and businesses have | | | | hobby and have made many strategies that are |
| physical offices in major trading areas like New York | | | | successful. There is room for more participants in the |
| and Chicago, but that is not a requirement. You have | | | | fx market, and they do not compete. If someone |
| no real advantage being across the street from the | | | | makes a strategy that is better than mine, I am a |
| CBOT or NYSE because there isn't any FX exchange. | | | | likely investor in that strategy. There isn't the kind of |
| Also it would be quite silly to strategically place your | | | | competiiton that exists in traditional I.T. business. |
| offices near your counterparties, which are large | | | | A little background |
| banks - because they are spread out all over the | | | | Foreign Exchange trading is the trading of foreign |
| world. And even considering that point, those banks | | | | currency from one to another, for example |
| probably don't even house their servers in their main | | | | exchanging Euros into New Zealand Dollars. The |
| offices they are probably remote. As the FX market | | | | exchange rates float, and you can exchange at one |
| itself is decentralized from a trading point of view, it | | | | rate, wait for a change, sell at another, and have a |
| is technically as well, allowing participants of any sort | | | | profit or loss. This is organized by large banks, and a |
| to be anywhere, that has a stable internet | | | | growing number of retail and individual traders. At the |
| connection. | | | | center of retail fx business are brokers who offer |
| Develop your own automated system - You can | | | | access to the interbank market through a number of |
| start from scratch, making your own FX Strategy, | | | | methods and software platforms. |
| and test it before using live money. Or, build on the | | | | The forex market is decentralized, in that you have |
| ideas of others, tweaking settings and rules to suit | | | | each counterparty clearing it's own trade rathar than |
| your needs. It can be fun, too! | | | | an exchange who counterparties clear through. |
| Custom tailored trading - There are very few | | | | Brokerage firms, such as FXCM, Velocity4x, GFT, |
| limitations to how you can run your strategy. This | | | | Gain Capital, and others, offer retail access to the |
| makes it possible to create complex money | | | | forex markets. You can open an account with CMS |
| management and trading strategies. Also, fx is traded | | | | Forex for as little as $200 USD! An account is either |
| in pairs, such as EUR/USD and EUR/CHF making | | | | self-directed, where you do the trading, or managed, |
| calculations more dynamic (whereas most other | | | | where you sign a Limited Power of Attorney to |
| instruments are traded against local dollars. For | | | | authorize another individual or company to manage |
| example if you purchase shares in Microsoft MSFT, | | | | your account. In a managed account situation, the |
| you pay in USD.) | | | | trader can charge you a commission of varying |
| Ultimate software business - Think about this: Most | | | | structure but the account remains in your name so |
| software companies write software and then sell it. | | | | he cannot withdraw the funds. |
| They are relying on marketing efforts more than the | | | | To read more about fx or the forex markets, please |
| quality of their software, to bring in results to the | | | | visit EES website: ees.net.nz |
| bottom line. If you develop a forex trading strategy | | | | More about the forex market. |
| or standalone software, you are actually writing | | | | |