Why trade FX?

FX trading is a true 24 hour market

There is no centralised exchange for FX trading. It takes place around the world, 24 hours a day (except on weekends).

Since the FX market is almost always open, traders can react to market, economic and political news as it happens, protecting profits or cutting losses.

Lower transaction costs

Most FX brokers do not charge commissions, but instead make money on the dealing spread (the difference between the bid and ask quote).

Minor capital requirements

FX is traded on margin. This is a more efficient use of your capital because you only have to allocate a very small proportion of the value of your position to secure a trade. Therefore, if the markets move in your favour, your profits will be magnified.

However, it is important to note that if the market moves against your position, your losses will also be magnified.

Liquidity

The FX market is the most heavily traded financial market in the world. With so many market participants, it is more liquid than any other financial market. This means clients have access to size, tight dealing spreads and lower margin rates than other financial markets. It also means FX markets are less prone to gapping than less liquid markets such as equities.