What is FOREX?

FOREX market is the international exchange market, and its participants make money from difference in currency exchange rates.

FOREX (English FOReign EXchange) is, as a matter of fact, a global exchange office where transactions are effected by means of the Internet through the electronic trading system.

It is popularly believed that FOREX is equal to exchange house. However, that is wrong. Of course, in some aspects they are definitely similar; however, there is a number of significant differences, allowing declare with certainty: to deal with FOREX is more interesting and easier than to run ordinary stock-exchange business. Or, in other words, working on the exchange market is more exciting than implementation of similar activities on the stock market. And now we are going into details:

FOREX market is the international exchange market, and its participants make money from difference in currency exchange rates.

  • What does stock exchange mean as its formal definition states? It is a certain place, platform for trading securities, oil, wheat or other commodities.
  • What does FOREX mean? It is a market, in which an exchange transaction in the electronic trading system may be directly effected by means of any authorized bank, even if it is at other side of the globe.

In other words, to start making money from differences in currency exchange rates, all you need is the certain scope of knowledge and a computer having the Internet access!

In order to sell quickly, in a pair of seconds, one currency and buy another one at the most favourable exchange rate, without paying extra fees, on your own, you should:

  • open a special foreign currency account in company, rendering services related to the FOREX market;
  • download an easy-to-use trading program;
  • install it to your PC, notebook, PPC or to mobile phone;
  • or to make use of ”Personal Trader”.

This is just the main advantage of the FOREX market over trading securities or other commodities on the stock exchange. You can independently gain profit wherever you are, at any place of the world.

Another advantage is FOREX operating hours— currency trading is carried out 24-hours-a-day, 5-days-a-week, unlike other stock markets have certain limited operational hours, which are different in each several country.
FOREX is similar to an ordinary stock exchange in its core point: there are standard contract amounts (lots). Exchange commodities also have standards according to quality and volume of supply. FOREX, like stock exchange, is governed by the binding regulations and supervising authorities protecting interests of all their participants by means of the fair pricing policy based on supply and demand. And, certainly, like on stock exchange, it has its traders and investors striving to increase their capital stock by means of sale/purchase transactions.

FOREX is the largest share of the global financial market. So do not miss an opportunity and take a step towards the financial freedom and independence!