Forex is actually the short abbreviation of "foreign exchange". It is the arena where one currency is exchanged for another currency. Therefore, forex is always traded in currency pairs. Some examples of currencies are, USD (United States Dollar), JPY (Japanese Yen), GBP (Great Britain Pound), EUR (Euro) and many others.
Forex is actually the largest financial market in the world. It is traded approximately USD 3.5 trillion a day, which is 5 times more than the total stock market and the futures market in the whole world combined.
In the past, the major players in forex are Central Banks, commercial banks, major importers and exporters, hedge fund managers and others. However, in the recent years, most business travelers and educated forex traders have also become players in the world of foreign exchange. There is an estimated statistics of over 40 million people all over the world who are currently actively trading foreign exchange currency.
There are few exciting reasons why more and more people are trading forex. The fx market is easily accessible anytime, anywhere. All a trader needs is an internet connection via a computer or a mobile phone. The forex market is the largest financial market in the world that offers superior liquidity. Currency markets are open 24 hours a day and 5 days a week through the world. Anyone can start trading with a relatively low initial capital investment. Forex trading is a recession-proof business, as profits can be harvested with different strategies wherever the market goes up, or down. In short, forex trading is the current most powerful financial tool to generate unlimited income.
Trading is done through brokers who typically provide the trading platform and the analysis tools. The only thing that one would ever need to do that requires careful deliberation and consideration in forex is to choose a regulated broker. It can be said that your fx broker is your success partner. There are many facilities and terms that the broker can provide to the currency trader to enhance and multiply his chances of success. These facilities and terms differ from broker to broker. Therefore, it is essential to know which broker's terms and facilities is the best to suit your trading needs.
An experienced professional trader or coach, who knows the routes of trading well can help to recommend you a good forex broker that suits your trading style and financial needs.