Forex Trading Fundamentals

Learn Forex trading fundamentals with our collection of free lessons.

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What is Forex?

Forex trading is the buying or selling of one currency for another. Forex trading goes by many names: it is also known as FX, foreign exchange and currency trading.

Why Trade Forex?

Long trading hours, deep liquidity and high leverage are just one of the few reasons why Forex is a popular choice for retail investors.

Forex Currency Pairs

Forex trading is based around pairs of currencies. A small number of currency pairs, known as Majors have come to dominate the market.

What are Forex Spreads?

Understand how to calculate Forex spreads, including the bid-ask spread

What is Leverage in Forex trading?

Leverage is an integral part of most Forex trades. It can significantly affect your potential gains and losses.

Fixed Spreads vs. Floating Spreads

Forex brokers offer a choice of fixed and floating spreads. So, what's best? The answer to this question depends on your experience and trading strategies.

The foreign exchange market is open 24-hours a day, except on weekends. As one financial centre closes, another one opens. We'll explain the best times to trade, and new ways to spot trading opportunities.

A Short History of Retail Forex Trading

Retail Forex trading has come a long way from the early days of the century, when it was the preserve of wealthy individuals with access to expensive trading platforms. We'll explain how Forex trading rose to prominence, through the rise of hundreds of online Forex brokers, powered by increasingly standardised trading platforms.

Featured Brokers

Best Execution

MT5 Floating - Market Execution

Trade 70+ currency pairs, indices, energies and metals on floating spreads with market execution. ... More

$500 deposit
1:200 leverage
1.51 pips EUR/USD
Regulators: Bahamas, Cyprus (EU), South Africa, UK

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Risk warning: 84.69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spread Betting work and whether you can afford to take the high risk of losing your money.

Best Conditions

ECN Account

Trade Forex on floating spreads from 0 pips plus commission on MT4 or MT5. Get started from a low $... More

$50 deposit
1:500 leverage
0 pips EUR/USD
Regulators: Cyprus (EU), Saint Vincent and the Grenadines

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Risk warning: 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Platform

Standard Account

Trade 74 currency pairs and CFDs on stocks, oil, metals and crypto with leverage up to 1:500. 4XC ... More

$10 (MT4), $ 100 (MT5) deposit
1:500 leverage
1.4 pips EUR/USD
Regulators: Cook Islands

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Risk warning: Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors as you could sustain losses in excess of your deposits. You should carefully consider your financial situation and experience level before trading.