Forex is an acronym that stands for Foreign Exchange. FXCM Markets is short for Foreign Exchange.
Forex market was restricted to certain members before 1996. These include bank, investment banks, influential people (high-net worth individuals), and conglomerates. You will need USD10,000,000 to start the market. Forex market isn’t popular with regular investors. They aren’t allowed or required to make investments in Forex market. Daily trading volume was also under USD500 million.
After Bill Clinton approved it, the Forex market was made available to the public. Forex brokers are like mushrooms, and their trading volume is steadily increasing over the years. Forex is the most traded market in daily trades, reaching USD3 trillion each day. This is more than all of the global stock exchange volumes. It is also 4-5 times higher than the US Futures exchange volume.
FOREX market can be so devastating that it can completely destroy a country’s economy in a blink of an eye. Many Asia countries like South Korea, Thailand. Indonesia, Singapore, Malaysia and Singapore experienced currency crises back in 1997. George Soros is one the most prominent players that has enjoyed more than USD1 Billion in a single moment during that crisis.
Increased competition from Forex brokers over the Internet has resulted in a decrease in the minimum capital required for opening an account. To open an account, you will need USD250 in capital. You can trade currencies with this initial capital.
The Forex market is open non-stop five days a week, 24 hours a year. Forex trading can only be done when there is a market up or down. Both methods can be profitable if you’re able to do it correctly. Forex trading doesn’t require any commissions. It offers high leverage, which allows small traders access the market with minimal capital.