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.

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.



Making And Losing Money

Related Articles
  1. Trading

    Top 5 Reasons To Invest In Currencies

    Here's why you should get into the forex market.
  2. Investing

    The Biggest Financial Market You've Never Heard Of

    Though many traders aren't familiar with it, the forex market is is actually bigger than the NYSE in many ways.
  3. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
  4. Trading

    Forex Trading: A Beginner's Guide

    Learn about the forex market and some beginner trading strategies to get started.
  5. Trading

    Getting Started In Forex

    Before entering this market, you should define what you need from your broker and from your strategy.
Frequently Asked Questions
  1. Who are Monsanto's main competitors?

    Learn about Monsanto Company's two main operating divisions and its main competitors within each sector, including The Mosaic ...
  2. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ...
  3. Do I have to complete all exams within a certain period of time to receive the CFA charter?

    According to the CFA Institute, a candidate can take as much time as necessary to complete all three levels of the CFA program.Therefore, ...
  4. What is a reasonable amount of debt?

    It really depends on numerous factors - what stage of life you are at, your spending and saving habits, the stability of ...
Trading Center