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There’s no doubt that the global forex market has grown markedly from the perspective of daily trading volumes, from $5.1 trillion in 2016 to $6.6 trillion by the end of 2020.
This growth has almost certainly been inspired by a rise in the number of part-time retail traders, many of whom prefer to remain out of the limelight and pursue profits by stealth.
However, many aspiring traders will have been inspired by the world’s most famous and successful forex operators, but who are these individuals and how have they made their name?
#1. George Soros
Soros’ story is a heart-warming one, having commenced his financial career at Singer and Friedlander in London after escaping Nazi-occupied Hungary during World War II.
His gradual success enabled him to form the Soros Fund Management venture in 1970, with this trading outlet having gone on to generate more than $40 billion in profit across the subsequent five decades.
However, Soros really came to fame in 1992, as the forex trader who reportedly ‘broke the Bank of England’.
More specifically, he sought to short-sell the British pound (GBP) to the tune of $10 billion, prior to the UK withdrawing from the European Exchange Rate Mechanism after striving and failing to maintain the required trading band.
This dark day is known as Black Wednesday, but for Soros the sudden decline and crash in the value of the pound enabled him to bank a cool $1 billion in profit.
This incredible and high-value trade cemented his status as one of the most successful forex operators of all-time, while it laid the foundation for Soros to become one of the 200 wealthiest individuals in the world.
#2. Stanley Druckenmiller
Unlike Soros, Stanley Druckenmiller grew up in a middle-class suburban Philadelphia family, before beginning a stellar financial career in 1977 as a management trainee at a Pittsburgh bank.
He quickly rose to success and formed his company, Duquesne Capital Management, four years later, before going on to successfully manage money for George Soros after earning the role of lead portfolio manager for the Quantum Fund between 1989 and 2000.
Interestingly, Druckenmiller also worked with Soros on the aforementioned Bank of England trade, launching his own unique rise to stardom as both a successful forex trader and a best-selling author.
In 1992, Druckenmiller published his hit book ‘The New Market Wizards’, while he abruptly ended his career in 2008 after surviving the 2008 economic crash and closing his hedge fund.
He cited burnout as the reason for his departure from the market, with the relentless nature of forex trading incredibly hard to cope with over time.
#3. Andy Krieger
Andy Krieger was a New Zealand-based trader who started out by working with the famous Salomon Brother brand, before joining the prestigious Banker’s Trust in 1986.
By this time, he had forged a reputation as a successful and highly innovative trader, and the company soon rewarded his efforts by increasing his capital limit to an impressive $700 million.
This was significantly higher than the typical $50 million limit, highlighting Kreiger’s innate ability to spot forex opportunities and optimise their profitability.
Interestingly, this sizable bankroll put him in the perfect position to profit from the 1987 crash known as Black Monday, which occurred on October 19th and made headline news.
Focusing on the New Zealand dollar (NZD), Krieger decided that this asset was particularly vulnerable to the practice of short-selling, as part of a global panic across a wide range of financial assets.
To optimise his potential profits, Krieger applied the extraordinary leverage of 400:1 to his extended trading limit, securing him a short position that was ultimately larger than the entire New Zealand money supply.
Needless to say, this trade delivered huge dividends, netting Krieger $300 million in profits for his employer.
Unsurprisingly, Krieger left the company the following year, with $3 million in his back pocket and the stated aim to start his own forex trading venture!
