With the establishment of the foreign exchange system countries and various entities will have rules to follow in trading with each other. Hence, companies around the world will be able to engage in business with one another by allowing conversion of one currency to another currency. Also, it will enable business which engage in trading currency like banks and other financial institutions to buy and sell other currencies. Today, forex trading is a worldwide financial market to enable countries and their constituents to do business with each other. Unlike the stock market, however, the forex market is completely different, as participation in the forex markets are limited to certain types of individuals or entities. Major participants include central banks, commercial firms, hedge funds and commercial banks. There is a great number of participants who actually trade in forex but this group has a very small impact on trading, because the significance in the amount of trade, unlike the major participants. They are composed of individual retail brokers which invest personal property on the forex market with the aim of increasing ones or anothers personal assets.