FXCM Markets is an acronym that stands to signify Foreign Exchange. FOREX is an acronym for Foreign Exchange.
The Forex market was closed to certain people before 1996. These included bank, investment banks as well as influential people (high net worth individuals) and conglomerates. To open the market, you’ll need USD10,000,000. Regular investors don’t love Forex market. Regular investors are not permitted to or required by law to invest in Forex market. Daily trading volume was also less than USD500 Million.
The Forex market was opened to the public in 1997 after Bill Clinton approved. Forex brokers can be described as mushrooms. Over the years, their trading volume has increased steadily. Forex is the most frequently traded market, trading volume exceeding USD3 trillion daily. This is more global stock exchange volumes than any other. It is also four to five times more than the US Futures trade volume.
FOREX markets can be so destructive that they can destroy an entire country’s economy in a matter of seconds. Many countries in Asia like South Korea and Thailand are affected by FOREX market. In 1997, Indonesia had currency crises. George Soros is one prominent player that has received more than USD1Billion in a single minute during the crisis.
Increased competition by Forex brokers online has led to a reduction in the minimum capital necessary for opening an account. Funding of USD250 is required to open an account. This initial capital is required to trade currencies.
Forex trading is open 24/7, 7 days a weeks, and 5 days a săptămână. Forex trading can only occur when there’s a market up and down. Both of these methods can be profitable provided you do them correctly. Forex trading doesn’t require commissions. It allows small traders to trade with high leverage.