How is the forex market different from other markets?
1. Fewer Rules: Unlike the trading of stocks, futures or options, currency trading does not take place on an exchange with rules, like the New York Stock Exchange. It is not controlled by any central governing body, and there are no clearing houses to make sure the party you are buying the currency from actually pays up. In fact, if you had exclusive information, and used it to make a lot of money, legal issues would not arise, like they would it in the stock market.
2. No Commissions: There are no exchange, brokerage or clearing fees in the FX market. Instead, brokers make money on the difference in price you pay to buy, or the amount you receive when you sell, currencies.
3. Trade Whenever You Want: Forex markets are open 24 hours a day, so if you are a night owl or early riser you can set your own trading schedule.
Making And Losing Money
4. No Limit to How Much Currency You can Buy: If you had $1 billion U.S. dollars you wanted to sell, you could do it! There's no limit to how much money you can buy or sell.
5. Easy to Get In and Out: You can buy and sell currencies with the click of a button, instantaneously. The market is so large that you will never be stuck if you wanted to get rid of – or buy - your stockpile of currency.