Any basic Forex information would not be full without explanation of what Forex means. Forex market or sometimes called as FX stands for a foreign exchange market (also known as “currency market”) where people – traders and brokers – are involved into buying and selling world currencies against each other. At the moment a lot of people join Forex market as traders due to great popularity and huge financial base and opportunities this market can offer even if comparing it with stock exchange markets.
What is Forex Trading?
Before we begin to explain what forex trading is, we’d like to give you some brief historical context.
The Foreign Exchange market essentially came into life in 1875, with the birth of the Gold Standard Monetary System. This was a system through which each country fixed an amount of their currency to an ounce of gold to signal its value. The price of gold fluctuated between currencies and this soon created a currency exchange system.
Choosing the Best Forex Broker
The first and most important step a trader needs to take is to find a forex broker they can trust. In this industry, brokers are an integral part of the trading equation and they are a trader’s prime business partner, so a trader’s aim should be to find the best forex broker available. Choosing a suitable and reliable broker is vital, as is choosing one that will meet your individual needs as a trader. In order to make an informed decision, there are some key factors every trader should take into consideration.