Lets start with the basics:
What is Foreign Exchange?
Simply put, foreign exchange (FOREX), is the exchange of one currency for another currency. A trader buys one currency while simultaneously selling another in hopes that the currency they buy will rise in value.
Before the internet, FX trading was only reserved for banks, large corporations, or high net worth clients who traded with a broker through the phone. As the internet age came about in the late 1990s, online trading became possible for everyday individuals.
Why trade FX?
FX is by far the largest and most fasted growing market in the world with over $5.1 trillion USD in volume traded daily. Compare this to the US stock market which has a daily volume of $250 billion, FX 20 times larger!
There are a several of reasons you should be interested in FX or looking to add it to your portfolio. Take a look at the chart below to see how Forex compares to Stocks.
How do I get started?
The easiest way to get started is by signing up for a free demo account. A demo account gives you virtual money to practice trading.