If you don’t know forex trading, know it’s a process used to make money buying and selling different currencies – and making profit from valuation differences. You could say it’s very similar to stock market, because it’s regulated by buying and selling laws, but forex has a much bigger market. Some of big banks involved with foreign currency negociations are Deustche Bank, Citigroup, HSBC, Merril Lynch and others – we can cite Goldman Sachs, ABN AMRO, Morgan Stanley etc. This list doesn’t look like to have an end!
If you wish to buy and sell currencies, so you need a broker – a forex broker, as they are better known. Yeah, you don’t need to be an expert to start to forex trade, but you should learn some forex trading simulator before to gain experience and understand some fundamentals.
Big banks are one of the biggest players on forex trading game – they have “only” some millions or billions to invest on it, so they have great bargain power – their movements can influence other investor opinions. Now, if you want to start to buy foreign currency, let’s talk about your bank. Does it offer options to purchase “coins” from other country for a vacation, for example? If not, your bank doesn’t have an exchange agency and it isn’t so good – not if you intend to buy some dollars, yens or other coin. You also check on financial prospects of a bank to know if it operates foreign exchanges – those reports are published some times yearly.
And now, you need to understand a little detail: in forex market, there isn’t an only bank controlling all transactions occurring daily. Forex transactions can be initiated virtually from anywhere. And if you want to know which currencies are most traded, they are here: American dollar, euro, yen, British sterling, Swiss franc and Australian dollar. But they aren’t only coins available for forex trading – you can buy or sell currencies from any country, possibly. Big players usually trade in one of main trading centers, like Tokyo, New York or London, but you can begin in your own bank or forex broker.