What is Currency Trading?
Currency trading refers to the buying and selling of currencies. Currencies are bought and sold, or exchanged, on the currency trading market. Currency markets are also called forex markets.
You can learn about currency trading or forex trading from books, DVDs, and online. You can practice currency forex online trading by signing up for a practice account with brokers. Make sure they offer comprehensive training, which is generally a free service. It allows you to make virtual (through the computer) trades, without the risk of actually losing money.
Currency Trading System
Most currency trading takes place between central banks, commercial banks, and large companies. Trades take place directly between traders. Retail currency trading is carried out through forex currency trading brokers and market makers (those who buy as well as sell world currencies). Traders place trades through their brokers. Brokers in turn place a corresponding trade on the interbank market (where banks and financial institutions trade in currencies). Retail investors and small traders cannot trade on the interbank market.
General Sources of Currency Trading
Currencies are traded by retail (individual) investors, financial institutions, and business corporations.
Online trading is nothing but selling and buying online using real money. An online broker takes the place of a human broker. Almost all brokers offer online trading services, but you have to open a currency trading account with them. They offer unique trading platforms for this purpose.
Ten Top Sources for Currency Trading
According to forex-ratings.com, the following are ten of the top fifty-three forex brokerages:
- FxPro.com: This trades with both individual and institutional accounts. One can start with a minimum deposit as low as $500. This is one of the best currency trading systems.
- ACM: This company offers standard and institutional accounts for forex online trading. They offer management services for both individuals and brokers, and some partnership programs. They deal with a wide range of currencies, in addition to offering multi-language support for their clients.
- Saxo Bank: They are the pioneers in offering investment trading platforms over the Internet. Their clients are from all parts of the world and include individual investors and institutional clients.
- MRC Markets: This company offers round-the-clock service to individuals and corporations to trade in all major currencies, stocks, and commodities. They offer traditional currency trading services via phone and Internet service through a MetaTrader platform.
- FXCM: They are one of the largest forex online trading brokers with a strong financial background. Their services are spread over the U.S., U.K., Dubai, Hong Kong, Australia, France, Germany, and Italy.
- eToro: This offers unique services for novices that teach them the nuances of currency trading and how to become efficient traders. This can be exciting for non-professional traders.
- EXNESS: With a mission “to provide reliable, affordable and qualitative services through innovative trading technologies,” they offer reliable services to corporate and individual clients. They have recently launched a VPS service that enables their clients to execute trading operations from any part of the world.
- Forex Club: This offers one-click trading with ActTrader, its newest trading platform. They boast of offering clients knowledge-based services that educates them about the market and enables them to make good trading choices.
- United World Capital Ltd.: They offer quality services including brokerage, money transfer, and currency exchange. They offer tailor-made products to suit customer needs.
- FBS : This company offers online trading services, online CFD, futures, indices, stocks, and other markets trading. It also provides market research and informational support to its clients.