What is forex trading?

What is forex? Forex (also known as FX) is simply shorthand for “foreign exchange”, which is the trading of one currency for another. A forex trader speculates on the price movements of one currency against another with the aim of making a profit.

Do Forex Traders need a license?

Forex traders are not required to have any specific license if they just trade in the currency pairs and CFDs on the Forex market. The traders have to get a specific license if they also want to trade stocks and bonds, futures, options and other types of securities. This type of license is known as a 'regulatory license'.

How do forex brokers work?

Forex brokers offer different trading platforms for use by their clients — just like brokers in other markets. These trading platforms usually feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems.

Who regulates forex trading in the UK?

The Financial Conduct Authority (FCA) monitors and regulates forex trades in the United Kingdom. Which Currencies Can I Trade in? Currencies with high liquidity have a ready market and exhibit smooth and predictable price action in response to external events. The U.S. dollar is the most traded currency in the world.