Contact Us

Forex Trading

Advantages of Forex Trading with JcmFX

Trade Forex, Precious Metals, Energies and Equity Indices from 1 Account.

Foreign currency (or forex) trading refers to buying and selling currencies online on the foreign exchange market, that is, trading currencies against one another in pairs, with the aim to make profits.

The foreign exchange, or forex, market is the worldwide largest market for international investment and trade on different currencies online. Without any actual physical location for buying and selling currencies, it is characterised by a decentralised structure and accessible via the Internet by investors around the world.

With its ability to facilitate the buying and selling of financial assets without causing drastic asset price changes, the foreign exchange market has the highest liquidity in the world. The market daily average turnover is over $5 trillion today, with over 80% of this growth mainly attributed to the trading activity of financial institutions through which the foreign exchange market operates. These major market participants include, among others, large central banks, institutional investors (organisations that invest large amounts of money in securities and other assets), currency speculators, governments, financial services providers (such as banks, trust companies, insurance companies), and retail investors.

The foreign currency market, unlike the stock market, is segmented into different access levels, having the interbank market at the top level (including the largest commercial and central banks in the world like Citi, Deutsche Bank, Barclays Investment Bank, UBS AG, HSBC, JP Morgan, or Goldman Sachs). Just like the foreign exchange market, the interbank market is also decentralized, encompassing the biggest commercial and investment banks, with almost 40% of all transactions carried out by top-tier banks. This is followed by the next level, which comprises medium-sized and small banks, hedge funds (private investment partnerships open to a limited number of investors only), commercial companies, retail ECNs (Electronic Communication Networks), retail forex broker companies, and retail traders (individual traders and investors).

With the advent of online trading platforms in 1996 the number of individual retail foreign exchange traders, who trade currencies and other financial instruments, has grown to a considerable segment of the forex market in terms of importance and size.