What is Forex? It is the largest platform for online currency transaction. The Forex market is a quick destination of modern investors. In this market the national currencies of different countries are sold & bought internationally. The investors all around the world are now interested in Forex trading due to some main reasons.
- Firstly, one can get the access of this market with minimum capital unlike share market where you have to enter with a few million dollars.
- Secondly, the Forex market has a high degree of liquidity due to its instant operation around the clock.
- Thirdly, this market’s operation is purely transparent. Nothing is hidden here. Anybody who is adult can enter this market.
- Fourthly, there is no time limit in Forex trade. It is always open. No breaks, interval or gaps are there unlike share market.
- Fifthly, the risk is relatively less in the forex market. The difference of exchange rate of a certain currency more than 1% is very rare in this market.
The new forex market has a turnover of around 3.98 trillion dollars. This figure makes this market bigger than any other market in the globe. In this market Forex brokers act as share brokers of share market. They help the investors who are also known as Forex traders. Depending upon the amount of investment a trader is known as mini trader, major trader, etc. There are some agencies also which associate the forex traders. It’s very tough to pick up the best Forex broker of the market. The best Forex brokers of this market are namely markets.com, etoro, plus500, etc.
The foreign exchange transactions are done on line, which is known as Forex online. The exchange rate of a certain currency depends on the economic condition of that country. This market is purely dependent on the economic stability analysis by the market analysts, which makes the Forex market more reliable than share market where the share price of a company is mostly dependent upon the investor’s expectations. In Forex market the price of dollar is high because USA has the most stable economy of this planet.