Is the Forex Market Really Transparent? August 14, 2017 For successfully trading or doing business in any market or industry, transparency is the key factor that is considered by traders as the most important one. The decision of whether to trade in a particular market or not depends largely on the level of transparency it offers. Among all liquid markets, forex is known to be the most transparent market globally. A large number of traders present in the market and the open and constant valuation of currency across the globe make it quite easy to trade in the forex market. For traders, transparency levels in forex or other liquid markets are of key importance. Transparency indicates the accessibility to trading information that a market offers without incurring any costs. When all the traders in a market have free and equal access to market information, it can be easier for them to make trading decisions that are risk-free and calculated. Access to past market information can also help them in analyzing the market trends and predict the direction in which the market is headed. Due to the fact that currency prices remain constant across the globe and there are very few opportunities to shift the market in a short time period, the level of transparency in the forex market is quite high. Brokers or other parties have minimal control over the bid ask spread, giving the power to traders. Due to the transparency of the forex market, the traders in this market have a higher controlling power over their trade transactions than all other liquid markets.One of the key factors that mostly control the currency price changes are the governmental policies of countries regarding currency which are often made public and can be accessed by traders conveniently. Since the chances for manipulating trade in the forex market compared to other liquid markets are quite low, brokers are often playing against their own traders, not paying attention to individual gains most of the time. The One of the key factors that mostly control the currency price changes are the governmental policies of countries regarding currency which are often made public and can be accessed by traders conveniently. Since the chances for manipulating trade in the forex market compared to other liquid markets are quite low, brokers are often playing against their own traders, not paying attention to individual gains most of the time. The situation, however, can be rectified by the fact that traders can learn to trade in the forex market on their own quite easily. For this purpose, different kind of trading platforms and demo forex accounts are offered to traders in the beginning where they can learn the trading strategies and rules of the market in a virtual environment. This helps them understand the working of the forex market and its relationship with other liquid markets before stepping into the real world and incurring financial losses. Since trading in the forex market can be done at any time of the day instantly through electronic platforms, traders can easily handle their transactions once they have learned enough about the market. However, to what extent a trader uses the transparency of any market to their advantage depends on their own skill. Having access to the information is not all there is to trade successfully. Figuring out what information is of importance at what time and using it to draw conclusions regarding the future market conditions is the ability that can make a trader successful. Despite the highest level of transparency among all liquid markets, forex is still a risky market and should only be entered if you have the right skills to trade successfully.