For quite some time already, my April fool jokes about the foreign exchange market closing down or the government monopolizing it no longer seem so outlandish as they definitely looked like back in 2009 and 2011.
With the current regulatory situation being very close to an outright ban of retail FX trading, will it take long for the coordinated effort by developed countries to outlaw speculative Forex trading completely? The legality of trading is called into question in many jurisdictions. If we look at the recent developments in the industry, you will notice the following signs:
The main argument in favor of the ban is that most retail traders lose anyway, making Forex trading akin to gambling. The situation is worsened by proliferation of scams in the industry. Prohibiting the Forex market participation for the individual traders would likely help the state to get rid of quite a few problems.
However, there are some factors making banning Forex trading quite impractical:
Moreover, even if a group of developed countries (let’s say all the OECD members) manage to outlaw Forex trading successfully, the action might draw a lot of public criticism as the ban would be most certainly considered as an attack on economic freedom.
I consider a complete ban on retail FX ban a highly improbable event in the next few years. I believe that a lot more regulation will be applied to the field, but that you and I will still be able to buy and sell a few lots to earn our share of profit. And what is your opinion on the matter?
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