There are many different ways to invest, trade, make, and lose money. Just about all of them are available in some fashion on the Internet. One of the big buzz words that I've heard over is Forex. I thought I would do a little digging on my own to find a little bit more information. I wanted to find out whether the things I've heard said are true.
Questions and Answers on Forex
- I'm not sure what it means? Forex is an abbreviation for foreign currency exchange. You can trade on how you think currencies will trade against each other.
- Is it legal? It sure is!
- Is it regulated? Yes and no. Each currency is independent. There isn't one body that has oversight over all this. So, individual currencies have restrictions. But there isn't any standard that applies to every currency.
- Is there a forex market? Not really. Most market exchanges like the Nasdaq or NYSE are open for a certain period of time. Since currencies are trading 24 hours a day, forex trades can really be made 24×7.
- Can I trade this with my brokerage? No. You can't trade through TD Ameritrade or a traditional brokerage.
- Then how does one trade it? It is possible. There are some online trading websites specialized for Forex trading. Make sure to check licenses. Consider that only a few online brokers accept clients from USA.
- Is it risky? Sure. Anything like this that has no regulations and is not government back provides risk. Trading is higher risk, but this is fine if you're risk tolerant.
- Does Money Beagle trade it? Nope. Totally not for me, but I like watching others.
There's a lot to learn about this forex, and as it is a fast growing, ever evolving market, it will be interesting to see how things develop in the future.