A true 24-hour market from Sunday 5:00 PM ET to Friday 5:00PM ET, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The FX market is considered an Over The Counter (OTC) or 'interbank/interdealer' market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets.
More information
For more background about the Foreign Exchange market, review the Federal Reserve Banks' "All About the Foreign Exchange Markets in the United States".
14.A true A true 24-hour market from Sunday 5:00 PM ET to Friday 5:00PM
13.Introduction to the Forex Market
The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion.
"Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.
For speculators, we believe the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
12. Keep 100% of Your Trading Profits
Keep 100% of Your Trading Profits
FOREX.com charges no commissions or transaction fees, while still offering free access to real-time quotes, news, charts, research, and more. The cost of trading is built into the bid/ask spread. Also, dealing spreads as low as 3 pips (.0003) are available in currency trading. Even at a penny ($.01), the bid/ask on a stock trade is 30x wider, in addition to the brokerage commission.
Up to 200:1 Leverage
With more buying power, you can increase your total return on investment with less cash outlay. Of course, increasing leverage increases risk. With $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can trade up to $200,000 in notional value.
11.The Benefits of Forex Trading
No Short Selling Restrictions
Forex trading always involves buying one currency and selling another, so traders can easily trade in a rising or falling market. There is no Zero Uptick rule or any other restriction against shorting a currency.
At $1.9 Trillion Per Day, Forex is the Most Traded Market in the World
The sheer volume of Forex helps to facilitates price stability in most market conditions. What's more, almost 85% of all currency transactions involve the 7 major currency pairs.
Trade on Your Schedule; Respond to Changes in the Market
Forex is a true 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday. With three distinct trading sessions in the US, Europe and Asia, you can trade on your own schedule and respond to breaking news
10.Are You New to Forex Trading?
Forex is traded much like any other financial instrument, using a combination of fundamental and technical analysis.
If you'd like to learn how to become a successful forex trader, consider a professional forex training course. FOREX.com is pleased to offer multiple forex training options that teach investors how to:
* Understand the logic behind Forex trading
* Recognize market trends
* Develop a forex trading plan
* Utilize tools to help you manage risk
* React to major economic events impacting global currencies
Click here for available Forex Training Courses
9.Successful firm with solid financials
FOREX.com is a division of GAIN Capital Group, LLC, a pioneer in the online foreign exchange industry. The firm is well-capitalized, with an experienced management team and strong corporate governance. GAIN's majority shareholders are five well-known U.S. venture capital and private equity firms with over $5 billion in combined assets. More awards & accolades
7.System stability and reliability
Our technology infrastructure is designed to support a 24-hour trading environment with 100% uptime. We subject our systems to rigorous testing and maintain multiple connections through several Tier 1 Internet backbones to assure connectivity for our clients around the globe.
6.Market research you can count on
Our experienced research team provides robust market analysis you won't find anywhere else, from real-time commentary to essential daily and weekly reports that summarize key market developments with an insightful perspective. More about our forex research offering.
System stability and reliability
5.Forex training and education
Whether you need ideas for a new strategy, to brush up on platform tools, or just to learn our platform for the first time, we have the resources you need at FOREX.com. Open a free forex practice account to test your knowledge with no risk or obligation, attend a webinar, or check our schedule for a forex workshop in your area.
4. 24-hour access to licensed representatives
Reach our knowledgeable, Series 3 registered reps 24-hours a day during market hours and on Saturdays from 9am-5pm ET. Get answers quickly by phone, email or chat.
3.Powerful trading tools
Spot and seize potential market opportunities with our forex trading platform. We make it easy to put your trading strategy into action with advanced order management tools, a choice of robust charting packages, and auto execution tools.
2.Quality executions
Our mission is to provide a fair, efficient trading environment for our clients, which means quoting competitive spreads and ensuring quality executions. Our best execution goal is supported by liquidity relationships with over a dozen of the world's leading FX banks, such as UBS, Barclays and Goldman Sachs. Plus, there are no restrictions on trading in volatile markets or before and after major economic announcements. Top 10 reasons currency traders choose FOREX.com
1.Commission-free forex trading
Trade on spreads as low as 1-2 pips on the most widely traded currencies. As always, you pay no commissions at FOREX.com, only the bid/offer spread. Our fractional pip pricing is the most precise quoting currently available to forex traders anywhere and is designed to help you take advantage of smaller price movements. Learn more about our pricing.