What is Forex Market?Forex Market also referred to as Foreign Exchange Market is an internationally recognized marketplace where investors buy and sell currency pairs. Is Forex Trading a scam? It is not a scam! Forex is a legal business traded by Central banks, commercial banks, and big financial institutions besides small retail traders like me. That is why governments have formed regulatory bodies to regulate Forex Trading activities. You can read about the agencies tasked with regulating forex trading in each country on this page.People who don’t know how online forex trading works think the business is a scam because they do not take the time to learn and master the concepts of forex market charts. Before you start to trade the forex markets, there are many things you need to learn to ensure you are not doing guesswork. Complete beginners who want to make money online by trading forex MUST start from the basics of forex trading.
What moves the forex marketThe movement of price in currency pairs is caused by different factors as highlighted below:
Central Bank Rate Decisions
What are the forex market advantages?Here are two advantages of the Forex Market:
- It provides a platform for countries to facilitate foreign exchange.
- Because of Forex Market, firms and individual foreign traders can convert their money into currencies they want.
7 Main Advantages of Forex TradingForex Trading is defined as the buying and selling of currency pairs. It provides many advantages to governments, large firms, and retail traders. Allow me to list some of theadvantagesof Forex Trading:1. Forex Trading is a source of employment because of the following reasons;
- It allows traders to earn money by buying and selling currency pairs.
- Forex market chart creates an opportunity for programmers to earn a living by designing Forex Trading bots and chart Indicators.
- Article writers can also earn a living by practicing their writing skills. N/B: Please note that Forex Trading is a technical field that you cannot just wake up and start writing about. First of all, learn how to trade and then spend time trading before you can start writing about the Forex Market.
What are the 4 Main Forex Trading StrategiesThe main types of Forex TradingStrategiesare:
How to Start Learning Forex TradingIt is very easy to start learning how to trade forex. If you are wondering where to learn how to trade Forex in, there are a lot of forex trading schools you can attend physically within your neighborhood. Additionally, you can use online resources to get basic trading knowledge. Here is a list of where you can learn how to trade Forex:You also need to know that you are on your own if you learn at Babypips because there is no comment section below each topic where you can ask questions. But the good news is that they have a Forex Trading Forum you can join and ask anything about Forex Trading.
Forex Exploits Academy
No Nonsense Forex
Financial Hub Forex Academy
XM Global Education Rooms
FAQs about Forex Market
What is the definition of Forex, and how does it work?
Forex means Foreign Exchange, and Forex Trading is done by exchanging one currency for another currency.
Is Forex a good market?
Forex Market is a good market because you can trade simultaneously in both price directions, unlike stocks.
Who controls the forex market?
Forex Market is a decentralized market. This means that it is not controlled by one single body, as in the case of stocks. For instance, Nairobi Securities Exchange(NSE) controls the Kenyan Stocks Market. But Forex Market is controlled by different Market Players such as Central Banks, Commercial Banks, and large Financial Institutions.The only work of a government forex trading regulatory agency is to protect investors from lousy Forex market players.
How is the forex market regulated?
Several global and local financial authorities are tasked with setting standards that all Forex brokers must comply with. Examples of such financial regulatory bodies include Kenya’s Capital Markets Authority(CMA), UK’s Financial Conduct Authority(FCA), and America’s National Futures Association(NFC).These financial regulatory agencies ensure that all Forex brokers operating in a jurisdiction are licensed and are subject to occasional audits.
What is the amount of money traded on the forex market daily?
Forex Market is larger than all the markets in the world. According to Investopedia, over $6.6 trillion is transacted in the Forex market daily.
Can You Get Rich by Trading Forex?
If you have the best Forex Trading knowledge but don’t have enough trading capital, you can never be wealthy by trading Forex. But if you have both knowledge and good trading capital, it’s possible to make a good amount of money through Forex Trading.Research shows that about 95% of Forex traders quit the business within the first three months. These people start trading with real money immediately after being introduced to the Forex Market. Most of them are greedy people who do not have enough capital and trading skills but want to make 1000% returns on their investment within a month.