Why Trade Forex?
Online forex trading has become very popular in the past decade because it offers traders several advantages:
Forex never sleeps
Trading goes on all around the world during different countries' business hours. You can, therefore, trade major currencies at any time, 24 hours per day, 5 days per week. Since there are no set exchange hours, it means that there is also something happening at almost any time of the day or night.1
Go long or short
Unlike many other financial markets, where it can be difficult to sell short, there are no limitations on shorting currencies. If you think a currency will go up, buy it. If you think it will fall, sell it. This means there is no such thing as a "bear market" in forex - you can make (or lose) money any time.
Low trading costs
Most forex accounts are made up of low, competitive commissions and super-tight spreads. You trade the direct quotes from our liquidity providers with no hidden markups.2
Because forex is a $4 trillion a day market, with most trading concentrated in only a few currencies, there are always a lot of people trading. This makes it typically very easy to get into and out of trades at any time, even in large sizes.
Because of the deep liquidity available in the forex market, you can trade forex with considerable leverage (up to 50:1). This can allow you to take advantage of even the smallest moves in the market. Leverage is a double-edged sword, of course, as it can significantly increase your losses as well as your gains.
As the world becomes more and more global, investors hunt for opportunities anywhere they can. If you want to take a broad opinion and invest in another country (or sell it short!), forex is an easy way to gain exposure while avoiding vagaries such as foreign securities laws and financial statements in other languages.
1 Subject to available liquidity, the trading desk opens on Sundays between 5:00 PM ET and 5:15 PM ET. The trading desk closes on Fridays at 4:55 PM ET. Orders placed prior may be filled until 5 pm (ET).
2 Intermediary Markup: In some instances, accounts for clients of certain intermediaries are subject to a markup.
Spreads & Commissions: Streaming spread figures shown are from FXCM’s Best Bid/Best Offer pricing engine. Historical spread figures shown are time-weighted averages derived from tradable prices at FXCM from 2 July 2014 to 31 July 2014. Spreads are variable and subject to delay. FXCM strives to provide traders with tight, competitive spreads; however, there may be instances when market conditions cause spreads to widen beyond the spreads displayed here. Advertised spreads & commissions may not be applicable to certain account types such as those under particular referring brokers and Active Trader accounts. Commissions are charged in the currency denomination of your account. Figures provided for informational purposes only, and is not intended for trading purposes or advice. FXCM is not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Execution Disclaimer: When trading Forex on both FXCM's Dealing Desk and No Dealing Desk (NDD) execution models, FXCM is the final counterparty to these transactions. In both execution models FXCM aggregates the bid and ask prices from a pool of liquidity providers. With NDD execution, the quotes that are displayed on FXCM's platforms are the best available direct bid and ask quotes received from liquidity provides. In some circumstances, depending on account type, a markup will be added to the spread. Aside from the spread between bid and ask prices, with NDD execution, the only trading cost is a fixed lot-based commission applied by FXCM at both the open and close of the trade. On the Dealing Desk execution model FXCM can act as the dealer on some or all currency pairs. There are also back up liquidity providers that fill in whenever FXCM does not act as the dealer. Please note that FXCM's Dealing Desk employs fewer liquidity providers than the No Dealing Desk execution option.
For more information, see our Execution Risks. Please note that contractual relationships with liquidity providers are consolidated through the firm's U.S. affiliate, Forex Capital Markets, LLC. Forex Capital Markets, LLC maintains agreements with multiple price providers and in turn provides technology and pricing to the group affiliate entities.