Forex Trading – What does it mean?
Ok so lets start at the very beginning. In this section we will cover the following questions about forex trading.
- So what is Forex trading?
- why do people trade forex?
- how can you trade Forex?
Forex is short for ‘The foreign exchange market'. Forex describes the buying and selling of currencies, and it is one of the fastest growing trading markets in the world. In three years (2007 – 2010) forex market transactions increased by over 20%, with the average daily turnover for the world reaching the best part of £2.5 trillion in April 2010.
How Forex Works
The best way to describe how Forex trading works, is that it is much like trading stocks. The idea being you buy low and you sell high, which equals Profit! So why do people trade forex? Because there are a number of benefits…
Trading forex is simpler in terms of choice. You are limited to the amount of currencies available to you, so you do not have to choose from thousands of companies. But more importantly, forex is traded 24 hours a day, Monday to Friday and does not open and close like trading stocks. This gives the busy professional time to trade before and after work, or indeed on his mobile phone throughout the day.
This now brings us to the most important benefit. Trading online allows you to buy and sell at anytime with just the click of a mouse. Trading platforms are available for mobiles, tablets as well as desktops and laptops. Apparently the average person spends 3 years of their life on the toilet, just think you could be trading online from your mobile or tablet instead of reading a paper 🙂 We provide as much educational resources as possible to help you, including trading tools, live prices and a host of training forex videos and educational material.
Join the millions of people trading forex online around the globe, utilize those 3 years spent doing something worth while!
How to Trade Forex Online
To trade forex online you firstly need to open an account with a forex broker. Before we give you any recommendations, please be aware there are hundreds of so called brokers online, that are just plainly scams! Do Not open any accounts with unknown or non regulated companies. You can usually spot them a mile off, with big promises of making quick fortunes with no knowledge required. Avoid these like the plague, they will take your money and you may never see it again!
We do have a list of forex brokers that we do recommend. They are all regulated by the Financial Conduct Authority and are the most popular used companies for trading forex in the Uk, Europe and Asia. You can quickly see these brokers in our menu on the right hand side of this page. Take a look at our forex broker reviews here and compare them.
If you want to learn more before you start trading please carry on to the next topic below!
Next Lesson: Currencies & Symbols