What is forex trading?

Forex or FX trading (from for eign ex change) is the purchasing and selling of sovereign currencies and other forex products. When exchanging currencies at a bank or bureau de change, the rates we find are determined directly by what happens in the forex market.

Why is Forex a good investment?

As a result, forex is highly liquid and has the largest trading volume compared to other financial markets. The forex market comprises two main activities: trading facilitating economic transactions and speculative trading. For companies and other entities operating in international markets, purchasing and selling foreign currencies are a must.

What is a foreign exchange (FX) market?

The foreign exchange (forex or FX) market is a global marketplace for exchanging national currencies. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the world's largest and most liquid asset markets. Currencies trade against each other as exchange rate pairs.

Which country regulates forex trades?

Europe is the largest market for forex trades. The Financial Conduct Authority (FCA) monitors and regulates forex trades in the United Kingdom. Which Currencies Can I Trade in?