Mason Mason543 Martinez

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How do retail forex traders differ from institutional traders?

Retail traders operate individually through online brokers, often with small accounts and high leverage. Institutional traders represent banks, hedge funds, or asset managers, managing millions or billions. Institutions benefit from direct liquidity, tighter spreads, and advanced tools, while retail traders face higher costs and less information. Benefits of retail: flexibility, speed, and independence. Risks: lack of discipline, overleverage, and emotional trading. Institutions prioritize risk management and long-term consistency. The difference is not just scale but mindset—institutions treat forex as a business, while retail often treats it as speculation.