Welcome to the World of Currency Trading

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Welcome to the World of Currency Trading

Welcome to the World of Currency Trading

Indeed large multinational and individual banks and other major financial institutions have dominated FX trading (also known as Forex trading), but there is a paradigm change in the nature and type of investing. According to one estimate, in the new millennium, there are over 6 million online investment accounts, up from 1.5 million in 1997. As a result, start-up firms now compete directly with financial institutions to serve investors in the new technologically driven economy, and the clear winner is the customer. The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy in Forex trading.

We know Forex trading is direct access trading of currencies. In the past, foreign exchange trading was limited to large banks and institutional traders but recent advancements in technology have allowed small traders to take advantage of the many benefits of Forex trading using online trading platforms to trade. Virtually Forex trading is done 24 hours day and almost 5 ½ days of a week. In the recent times, online trading has revolutionized the currency markets by making it accessible to the small and medium sized investor.

The Forex trading is perhaps the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example EUR/USD or USD/JPY or USD/INR etc.

In the new millennium, the Forex trading has become accessible for an individual investor or small group of investors. In the current scenario, investors reap many benefits from Forex trading than stock market, e-mini futures and such other trading. Today mostly traders are choosing Forex trading than stock trading because there are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. In spot Forex trading, you have 4 major markets, 24 hours a day 5.5 days a week. If you are so inclined, you have approximately 34 second-tier currencies to look at in your spare time. You can concentrate on the major forex and can find your trade. When you are investing in forex you can spend your afternoon on the golf course or with your spouse watching movie or celebrating holidays-in short it is easy and hassle free than stock/future market.

Not only is it an accessible, easy and less capital-intensive business opportunity, but it is much more cost efficient too to invest in the Forex market, in terms of both commissions and transaction fees. Generally, commissions for stock trades range from a low of $7.95-$29.95 per trade with on-line brokers to over $100 per trade with traditional brokers. Opposite to that, typically stock commissions are directly related to the level of service offered by the broker. At the high end, traditional brokers offer full access to research, analyst stock recommendations, etc. In contrast, on-line Forex brokers charge significantly lower commission and transaction fees.

Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com

In The News:

Free Guide to Trading Forex during Volatile Times
Sacramento Bee
By City Index Australia The recent falls in commodity currencies, including the Australian dollar, show how volatility in global markets could present trading opportunities for forex traders. For example, the Aussie dollar (AUD) was trading as high as ...
How to Start Trading Forex: Free Beginners GuideEinnews Portugal
OPTIONS PLAY: USD INDEX FUTURES TRENDINGInside Futures

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Vantage FX UK Launches New Bloomberg TV Campaign
SYS-CON Media (press release)
The adverts are due to air on financial news network Bloomberg and will promote the exceptional level of personal support offered by the London-based Forex trading dealer. In the commercials Mr Berkeley states: "At Vantage FX we strive to deliver a ...

and more »

ZuluTrade's Social Forex Autotrading Platform Now Available to ACFX's Clients
MarketWatch (press release)
NEW YORK, May 23, 2012 (BUSINESS WIRE) -- ZuluTrade.com, the largest automated social Forex trading platform, which enables users to follow successful traders' performance, announced today their partnership with ACFX, the Forex brokerage arm of the ...

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Forex Trading Tips for Investors in the Global Currency Markets
MarketWatch (press release)
SINGAPORE, May 23, 2012 /PRNewswire via COMTEX/ -- Forex Trading offers various benefits from tighter fixed FX spreads to greater leverage and substantial gains from small movements in the market. Foreign exchange (Forex, or FX) is one of the most ...

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China banks report monthly net forex selling in April
Reuters
BEIJING, May 24 (Reuters) - Chinese banks sold more foreign currency than they bought for clients in April, leading to a net sale of $3.7 billion in foreign exchange in over-the-counter transactions, figures from the State Administration of Foreign ...

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Big Players Dominate FX
Traders Magazine
The Bank for International Settlements offers the most comprehensive view into the FX market and comes out with a highly anticipated report every three years. The last Triennial Central Bank Survey came out in December 2010. FX trading represented a $4 ...

Palm Beach Post
FOREX-Euro weak near 2-yr lows on dire German data
Reuters
The euro dropped sharply to $1.25155 on trading platform EBS, its lowest level since July 2010, before recovering to trade at $1.2575 as some investors booked profits on bearish positions initiated earlier. But any rebound was likely to be fleeting and ...
Euro Drubbing Continues; Currency At New 22-Month LowWall Street Journal
Greece remains dominant in currency marketsFX-MM
Europe's stocks hit on EU summit skepticismSeattle Post Intelligencer
Palm Beach Post
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Euro, Risky Assets Look To Eurozone PMI And German IFO For Direction
TheStreet.com
By Doug Kass The major currencies consolidated in quiet overnight trade as markets digested volatility over the preceding 24 hours before a busy day of European economic data offers new catalysts. The preliminary set of May's Eurozone PMI figures is in ...

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Phones Review
Try a New Approach to Forex Trading With Vantage FX UK
MarketWatch (press release)
LONDON, UNITED KINGDOM, May 21, 2012 (MARKETWIRE via COMTEX) -- For MetaTrader 4 traders seeking the ideal Expert Advisor to automate part or all of their Forex trading process, Vantage FX UK ( http://www.vantagefx.co.uk/ ) has the solution.
GO Markets Achieves Record Gains with Launch of CFDs & Pro Trading AccountsWebWire (press release)
Why MetaTrader is the Best Trading SoftwarePhones Review

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RMB Goes Live With TraderTools' FX Trading Platform
MarketWatch (press release)
NEW YORK, May 22, 2012 /PRNewswire via COMTEX/ -- TraderTools Inc. (TraderTools), which provides the only complete, integrated FX trading platform available on the market, announced today that Rand Merchant Bank, one of the leading investment banks in ...

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