Why trade FX?

There are several significant reasons why trading FX can be very effective.

A true 24-hour market

There are no central exchanges for FX trading, so trading occurs across timezones around the world. This means that the market is truely open for 24 hours a day, all working week. The markets close (at local times) over the weekend.

Available for short and long-term traders

Long term traders use either technical or fundamental analysis to determine their trades.

However, because the FX market is especially liquid and responsive to events, short-term traders can make use of occurring events to trade from moment to moment.

Lower costs

FX brokers do not usually charge commission, but instead offer a spread across buy and sell prices.

Margin trading

FX is traded on margin. Therefore you only have to place a small proportion of the value of the trade to buy into the market. This also means that any movement in the market magnifies your profits (or losses).

Liquidity

The FX market is generally regarded as the most liquid in the world, because of the large numbers of participants. This means lower spreads and tighter margins available to clients, and FX markets are less liable to gapping than in other less liquid markets.

Forex and CFD trading carry a substantial risk of loss and are not suitable for all investors. Please refer to our Risk Warning policy (PDF) for more information.