FX, Forex and Foreign exchange are all the same thing. These are the currency markets. This by far is the biggest financial market in the world with trillions of Dollars being exchanged and traded every day.
Currencies are quoted in pairs for example EUR/USD. This is the EURO against the DOLLAR. The first listed currency is known as the base currency, while the second is called the counter. The currency on the LEFT is always what you will be buying or the selling.
If you BUY EUR/USD you have bought Euros while selling Dollars (this is part of the contract and done automatically). You would do so in expectation that the Euro will appreciate (go up) relative to the US dollar.
The FX markets are so popular there a number of trading platforms that only specialise in trading FX. With it being so large there are as many opportunities to trade round the clock that there is in most of the stock markets put together.
If you are interested in FX trading we recommend eToro:
- Open Book – Facebook of trading
- Up to $10,000 deposit bonus
- Open an account with $50
eToro.com combines a great looking trading platform with online chat and forum facilities. This allows you to trade and to communicate instantly with other traders and online coaches. The platform provides quotes on Forex, commodities and the major indices. If you want the complete online experience this is the best trading platform.