A forex expert is a currency trader who specializes in investing in futures and options.
Forex expert services can be costly, and some forex traders can make a killing by buying and selling large amounts of stock.
For the average consumer, they’re more of a bonus than a necessity.
But forex guru Jim Johnson has become an icon.
He’s one of the biggest names in the industry and the founder of the Trading Machine, a $250 million investment fund.
In an interview with Business Insider, Johnson said forex is a big business for the big banks.
He said they’re “going to have to figure out ways to make it more profitable.”
Johnson says he has been doing it for more than 40 years.
The forex market is still “going through its early days,” he said.
“People are getting excited about it.
There’s a lot of interest.”
The market was worth $13 trillion in 2015, according to Bank of America Merrill Lynch, but that’s still a tiny fraction of the total assets in the market.
Johnson estimates he’s made a profit of more than $250 billion.
“A lot of these people who are doing it are in a bubble,” Johnson said.
The bubble is the amount of money that can be made by trading on a stock market that’s already undervalued, Johnson told Business Insider.
“They’re making a lot more money than if they were trading stocks.”
Johnson said he’s done the best he can in the money he’s been making.
He says he’s invested $250,000 in a company called Ritholtz Wealth Management that is “in the business of managing long-term funds.”
Johnson has invested about $250m in Rithamp, a mutual fund with about $2 billion in assets, according the Rithipson website.
But he said that’s a small portion of the market and said it’s not the main reason he’s doing it.
Johnson has worked with about 1,000 people and said he can’t tell you how many times he’s gone on a shortlist and not been able to find a buyer.
“It’s not like the average person that’s buying stocks.
It’s a big bubble,” he told Business, saying that “the stock market has been overvalued.”
The stock market isn’t the only one that’s undervalued.
Banks are undervalued as well, according.
ForeX, which is the digital currency that’s traded on Forex platforms, is still undervalued compared to the currencies it was backed by, according an analysis by Bank of England and the University of Cambridge.
Forexpulse, a forex service provider, also has a big market cap, at $6.5 billion, and a market cap of $6 billion, according a Bloomberg analysis.
Johnson told the Insider he believes banks are undervaluing forex because the financial services industry is growing, and there’s more demand for forex than there is for stock trading.
“We’ve seen this in other markets, like in the bond market,” he explained.
“In the bond markets, they’ve got lots of big hedge funds and they’re buying a lot and they’ve just kept on buying.”
In fact, a recent Bloomberg analysis found that banks are “selling a lot” of their bonds and are buying back more.
Johnson said that the big risk to banks is that they could lose more than they make.
“The big risk is if they make money, and then their capital is invested into something and they don’t make money,” he pointed out.
“You don’t know what they’re investing in.”
That’s not just true in the US, where the Federal Reserve has been pushing banks to invest more in forex.
Bank of Tokyo Mitsubishi UFJ, -0.18% and Deutsche Bank AG, -1.03% both have said they plan to add more forex-related businesses to their trading desks.
Johnson says the biggest problem is that the banks don’t understand how much forex they’re making.
“This is not the only problem,” he warned.
“Banks don’t have a lot in terms of the fundamentals.”
“The way I view it is that banks should do the right thing and get a lot invested in the stock market.
They should get on a list of the top five most important markets in the world.
That’s where they should put their capital,” Johnson added.
Johnson, who has worked in finance for decades, believes that he has the experience and knowledge to help banks better understand the market, and he said the market will be a “big part of our future.”
Johnson, 47, started working in the finance industry in the early 1990s as a trader.
He was able to make $200,000 a year by selling options, a product that allowed a stock trader to bet on an upcoming market move.
“That’s why you have options,” Johnson told BI.
“If the stock is going to go up, you’ll get paid