Forex is one of the hottest and largest financial trading markets in the world today. The rise of the new E-economy caused online Forex trading website and firms to be able to offer trading accounts to almost anyone with a computer and an Internet connection. In our days everyone can trade currencies just like the world's largest banks do. Companies - Companies need to use the foreign exchange market to pay for goods and services from foreign countries and also to sell goods or services in foreign countries. An important part of the daily Forex market activity comes from companies looking to exchange currency in order to transact in other countries.
Just like stocks, you can trade currency based on what you think its value is (or where it's headed). But the big difference with forex is that you can trade up or down just as easily. If you think a currency will increase in value, you can buy it. If you think it will decrease, you can sell it. With a market this large, finding a buyer when you're selling and a seller when you're buying is much easier than in in other markets. Maybe you hear on the news that China is devaluing its currency to draw more foreign business into its country. If you think that trend will continue, you could make a forex trade by selling the Chinese currency against another currency, say, the US dollar. The more the Chinese currency devalues against the US dollar, the higher your profits. If the Chinese currency increases in value while you have your sell position open, then your losses increase and you want to get out of the trade.
London Capital Group Holdings plc (LCGH plc) is a company registered in England and Wales under registered number: 05497744. London Capital Group Limited (LCG) is a company registered in England and Wales under registered number: 3218125. LCGH plc is a member of the London Stock Exchange. LCG is a wholly owned subsidiary of LCGH plc. LCG is authorised and regulated by the Financial Conduct Authority (FCA) under the company's registration number of: 182110. The registered address for LCGH plc and LCG is: 77 Grosvenor Street, Mayfair, London, W1K 3JR.
Banks - The interbank market allows for both the majority of commercial Forex transactions and large amounts of speculative trading each day. Some large banks will trade billions of dollars, daily. Sometimes this trading is done on behalf of customers, however much is done by proprietary traders who are trading for the bank's own account.
The CFTC's Division of Enforcement has established a toll-free telephone number to assist members of the public in reporting possible violations of the commodities laws. Call 866-FON-CFTC (866-366-2382). In addition, if you think that you have been a victim of a forex scam, you can report suspicious activities or information to the CFTC in the online form on the this website, or by mail addressed to the Office of Cooperative Enforcement, CFTC, 1155 21st Street, NW, Washington, D.C. 20581.