The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market. List of Top 10 Best US Forex Brokers
The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency’s absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. Ex: USD 1 is worth X CAD, or CHF, or JPY, etc.
The foreign exchange market works through financial institutions and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as “dealers”, who are involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the “interbank market” (although a few insurance companies and other kinds of financial firms are involved). Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, Forex has little (if any) supervisory entity regulating its actions.
The United States has by far the largest share of the world stock markets, amounting to over half the total value of global. The Forex market has been particularly active since the 1970s and in the USA, like in the rest of the world, and it has gained popularity over the past 40 years. Therefore, forex trading definitely is a popular activity among forex traders in the United States. Many brokers have launched and developed user-friendly and advanced online trading platforms that have simplified the process of trading and made it available from almost anywhere in the world.
Here is a List of Top 10 Best US Forex Brokers
IC Markets is considered safe because it is regulated by the top-tier ASIC. Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.32% of retail investor accounts lose money when trading CFDs with this provider.
XM Global Limited was established in 2017 with headquarters in Belize and it is regulated by International Financial Services Commission (000261/158). All countries that are in Eurozone or in EU are provided with special regulation measures for both – gambling and trading websites.
Exness (Cy) Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with license number 178/12. Overall, Exness can be summarised as a trustworthy and regulated broker that is very competitive in terms of its trading fees (against major currency pairs). The spread is also very low and offers a sign-up bonus for 1st-time traders
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