Forex trading is a type of international monetary exchange in which currencies exchange against each other. In 2017, forex trading have the worth around 5 trillion US dollars every day! That’s a lot of money.
But if you have any interest in forex trading, there are a lot of things you should know before you start out. Choosing the right forex platform is one of the most important things. What are the brokers’ advantages and disadvantages? How do they compare with each other?
We will give more details about the main differences between these forex platforms in this article and discuss some of these things.
What is Forex trading?
Forex (foreign exchange) trading is an international monetary exchange in which currencies are exchange against each other. Trading usually takes place through currency exchange brokers called ‘dealers’. Most currencies fluctuate against the U.S. dollar, well-known as the ‘main’ currency.
Hence, this is why a lot of people refer to forex trading as ‘trading currencies’. For example, if you wanted to trade Japanese yen (JPY), you would exchange them for U.S. dollars and vice versa.
You should be aware of the fact that foreign exchange brokers are differently in different countries around the globe. In the Australia forex trading, the Australian trading platforms is a popular type of ‘securities’ exchange. And fall under the FINRA and the SEC (Securities and Exchange Commission) while in the U.K it is categorized under ‘futures’.
Advantages of Forex Trading
The main advantage of forex trading is that it offers flexibility. Unlike other types of financial investment, you do not have to put much money up-front when you trade currencies. You can invest even with as little as $100! This can be especially helpful for people who are just starting out for the first time, or for those who are uncertain about how much money they want to risk on trading or investing in general.