Unlike stock trading, the foreign exchange market does not have a local government agency or international organization overseeing it. In fact, it does not have a single central office. Yet it stays open the whole day and night from Sunday afternoon to Friday afternoon. It is also one market where buyers and sellers do not have certificates of stocks yet transactions proceed based on verbal agreements alone. There are no holding houses or clearing houses but transactions proceed without anyone policing their ranks. No other financial transaction operates quite like this.
In the days before the internet, transactions were made on a one on one basis or through telephone calls, faxes or cables. Yet during those times, there already were a lot of activity going on in the currency market. Add the trend for globalization and the advancements in technology; forex has never been more dynamic. Now more than ever the 24 hour market that runs for five straight days is more liquid and transactions are done quicker due to the internet. Following the latest developments becomes easier too since all that a principal or a dealer has to do is click on a website and they would have a quick and up to date view of the trading.
This is one of the reasons why foreign exchange trading is popular. If you’ve got the means to do it you are almost sure of earning. Almost everything can be done online. From registering with a bank, finding a signal provider, learning to read the market and even have a ‘no hands’ approach trading. That is, you just register with a qualified trading company and you let them take over the whole business for you. You don’t even have to learn about pips or forwards or spots. Just make sure your money is being handled by a legal entity. There are a lot of crooks in the internet as in the real world. They can quickly scurry away your investment because of their anonymity online.
If you do need to get technical about it or prefer to learn about forex and all its intricacies before you dive in, numerous websites offer tutorials, lessons and training packages that will equip you and have you trading like an expert in no time. After that, all you need to do is trawl the web to find the companies that can help you begin trading and even set you up with practice trades. All of these benefits are available to you right in your own home. You no longer have to move to New York or whatever financial capital to live near where the action is. Everything is accessible through the telephone or the internet for online forex trading.