Anecdotal evidence that forex trading is expanding rapidly can be found everywhere these days, from the decline in volatility wrought by a surplus of liquidity, to the proliferation of websites and companies that offer guidance to retail currency investors.  Lured by the most liquid market in the world and 100:1 leverage, hedge funds have also piled in currencies.  As a result, in its not-yet-released annual report, the Bank of International Settlements is expected to confirm that daily forex volume now exceeds $3 Trillion, up from $2 Trillion in 2004!  Wall Street investment banks are springing into action to meet this growing demand for forex products and services.  This week, Citigroup launched an ETF based on “common FX strategies.  Credit Suisse, meanwhile, launched an index that lets investors mimic the carry trade.

Read More: Race to profit from currency markets