Foreign exchange (FX or FOREX) is the cornerstone of all international capital transactions and transcends domestic money markets in terms of liquidity and depth; Even futures and stock markets are insignificant when compared.

The majority of foreign exchange transactions are not directly related to international trade or international agreements, in fact speculative by nature. For every trade-related transaction in the FOREX market, there are about 7 to 9 speculative transactions. Foreign exchange is the world's fastest growing industry today, and its growth can be attributed to its significant liquidity and the way it works.

Spot FX, unlike stock and futures, is not traded on the stock exchange. Thanks to technological advances in the fields of electronics and telecommunications, the networks of banks and brokers have become almost instantaneously a system of information, data and fund transfers almost instantaneously. With the help of such developments, spot FX has provided a significant advantage over other financial products that are confined to specific time periods and have to endure the irregular strains and confusions of the trading floors.

Nowadays, banks and brokers work on screen-based systems, where bidirectional prices are constantly fed and the participants take over. These systems guarantee greater transparency and instant access to price information anywhere in the world.

Potential Advantages of Forex Market

  • Forex investments can offer some of the best reward / risk opportunities of any financial market
  • Forex market hours are one of the most flexible in any financial market
  • Huge volume of transactions resulting in a high level of liquidity (the market's ability to accept large transactions)
  • The Forex market is among the lowest initial costs of any financial market in terms of money and time.
  • Investors can leverage the smallest movements in exchange rates
  • Investors can earn fixed income with rollovers / swaps in open positions
  • Free "Demo" Accounts, News, Graphs and Analysis
  • “Mini” and “Micro” trading via Meta-Trader 4 trading platform

Potential Risks of FX

  • Leveraged trading puts your capital at risk. If the market makes a significant move based on your current open position, you may lose all or most of your trading capital.
  • Your loss may exceed your deposit
  • Past performance does not guarantee future performance
  • Tax benefits (if exist) may vary and depend on your personal circumstances.