There are some observations that one can make about the forex trading market depending on the behavior of the different elements that manage the business sector. Initially we have to accept that this is a growing sector that will have many changes as time goes by. We cannot make firm conclusions about the forex trading sector at this moment because there is still plenty of scope to develop the concept further.
We have to accept that the industry has gone wild in some ways and the government has had to intervene in order to bring some order to proceedings. At the same time there has been concern that this interference from government would remove the success factors within the forex trading industry.
It is not outside the remit of government to have an overview of the financial sector. After all the credit crunch taught us that if government liberalized the economy without the right regulatory framework, there would be serious ramifications for the country. It is therefore logical that there would be some regulation of the forex trading market. What is unacceptable is the direct intervention of the government that tells the traders how to do their job. What is even worse is the entry of government through its own forex bureaus.
Some people might say that government is only doing this to protect the interests of its citizens but there can be serious ramifications for the industry as a whole if this is allowed to go unchecked. Government cannot compete fairly with the private sector. It has far too many resources and levers that it would inevitably end up setting up a powerful monopoly over the market. If a government agency was to open up a forex trading establishment, it is likely that they will put regulations in place to ensure that that enterprise is the market leader.
There is a danger in the liberalization of the forex trading market. Not everyone that is involved in the market follows the rules. In fact they are examples of people that deliberately break the rules. That is why government would be best advised to watch the development of the industry with a critical eye to ensure that these unscrupulous elements do not get a foothold in the industry. It might also be necessary to exclude certain categories of people from the business altogether on the basis that they are not good for the general management of the industry.
In conclusion I would argue that the success of the forex trading has made it inevitable that government will take an interest. This interest is primarily focused on the benefits for the citizens of that country. It is also about ensuring that economic growth can be managed together with the innovations that are coming out of the financial sector. It is not meant to be a hindrance to individual traders that end up bringing in significant tax revenues for the government at both local and national levels. That is the role of forex trading.