Sunday, October 21, 2012

Forex trading

Start forex trading today and make money in the world’s largest financial market. Discover the benefits of fx trading with Forex4you:
Get access to fx trading tools designed for the forex trader
No commission
Low spreads save you money on fx trading
Free demo account to learn forex trading
Start trades with as little as 2 cents
You choose the level of forex trading leverage: 1:10 to 1:500
Get rewarded with lucrative fx trading bonuses
Trade all major currency pairs

Learn forex trading with a free demo account or open a live forex account and make trades beginning at just 2 cents. You'll pay no commission and earn attractive bonuses – the more fx trading you do, the more you earn!

We give you access to our daily fx trading tips, letting you stay on top of the market and learn forex trading as you do. When you trade with Forex4you you can achieve forex trading leverage of up to 1:500, so you only need $20 to trade $10,000.

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What is forex trading? How do people make money in the forex market?

When you go on vacation, you buy foreign currency. When you return, you change back the foreign currency that you have left. The problem is that you lose money, because you pay a high rate when you buy foreign currency and get a low rate when you sell. This is the spread, and it’s how the bureau de change makes a profit.

What if the spread were very small?
You buy $1,000 in London
The bureau de change is selling at 1.60 USD/GBP and buying at 1.62 USD/GBP
You pay £625 for $1000
You would lose £7.72 if you sold the $1,000 back right away – but you don’t
You wait two weeks and the dollar gets stronger
The bureau de change is now selling at 1.57 USD/GBP and buying at 1.59 USD/GBP
You sell your $1,000 and get £628.93
You’ve made £3.93 on forex trading

You can’t get small fx trading spreads from a bureau de change, but you can get them from a forex broker. You can also do fx trading on margin, so you only need to come up with 1% of the money if you have leverage of 1:100. That means you would only have to invest £6.25 to make the £3.93 profit above. Of course, your forex trading profits aren’t guaranteed; the dollar could go down as well as up.

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