Forex (also known as foreign exchange or FX) trading refers to the exchange of one currency for another.
There are several reasons why you might want to exchange currencies, including:
The Forex market is open 24 hours a day, from Sunday 5 p.m. EST to Friday 4 p.m. EST. It is the largest and most liquid market in the world, and in 2019 over $6.6 trillion worth of currency was traded daily. By comparison, the largest stock exchange in the world, the New York Stock Exchange, involves $1.1 trillion of average volume traded daily.
“Liquidity” refers to how easy it is to buy and sell an asset without affecting its market price. It is precisely because of the huge volume of trade involved in Forex that each transaction, on average, has barely any effect on the overall market.
The low liquidity of major currency pairs in the Forex market – such as EURUSD or GBPUSD – is one of its greatest advantages because this means there is always likely going to be someone willing to take the other side of your position. If only a few thousand traders were in the market, how likely is it that you would find someone willing to give you a good deal if, say, the price of your asset was falling? If you need money for basic living expenses or emergencies, you can almost instantaneously sell your position and have some money on hand.
Forex Trading with FXCentrum
With our platforms, not only do we charge 0 commissions on all trades, but you can buy and sell foreign currency CFDs from anywhere as long as you have access to the internet or a phone.
We offer Forex spot price CFDs such as those for the Euro vs US Dollar (EURUSD), Euro vs Turkish Lira (EURTRY), Great British Pound vs Japanese Yen (GBPJPY), and many more.
Spot price means the current price an asset is trading for, as opposed to a futures price.
CFD stands for contract for difference. These are contracts that essentially allow you to “bet” on the future price of the Forex currency pair you are interested in at a certain date in the future.
The best thing about trading CFDs is that you don’t need to physically go to exchanges or the bank nor find a buyer and fight for a suitable price. You also don’t own the actual Forex currency pairs. What you do is take either a long or short position on them.
So, if for example, you hold a long position on EURUSD, you are predicting that the price of the Euro will go up in the future. If it does go up, you make money! If you take a short position, you are predicting the price goes down.
Don’t know what long or short positions are? Click here to see our explanations of basic trading terminology.
The advantage of buying CFDs over the actual currency pairs is that leverage can be provided, and you can make a lot more profit with a lot less money. Here at FXC, we provide leverage of up to 1:1000 for clients wishing to trade using our platform. So, for every $1 you invest, FXC can lend you $1000. This means you could buy $100,000 worth of currencies with just a $100 deposit, depending on the margin requirements of the particular instrument. You can find all the details here.
However, leverage can be risky, which is why you can choose the amount of leverage you want, or even none at all.
We offer very low spreads from 0.3 pips. Other brokers may offer even lower spreads but can charge commissions on top, which could make it even more expensive in the end.
We also offer a 0% deposit and withdrawal fee (every first withdrawal in a month is free). We are connected to all the payment providers you need, including Visa, Mastercard, OnlineNaira, and Wire Transfer. If you don’t see your favourite provider, please contact us at firstname.lastname@example.org.
We recommend that you contact our FXC support team to book a consultation with our investment specialist manager.
For some popular Forex strategies, you can visit this page.
Come learn about trading with us, practice with a demo account, enter our competitions, and most importantly, join the fun!