BeamFX: Why Trade Currencies?

Information

Strong Reasons to Trade Currencies - foreign exchange (forex)

Terminology: the trading of another country's money, as a commodity, is known as currency trading, foreign exchange/forex or foreign currency trading. The terms are used interchangeably.

Over-and-above commercial demand for foreign currency to facilitate export transactions, market participation is also driven by interest rate differentials. Professional currency traders watch national inflation figures as a result. In addition, anything that may encourage/discourage the purchase of foreign assets is also monitored closely.

Currencies are attractive to retail investors because:

• Banks trade currencies! For the retail investor, trading with the market movers is key. All large banks have foreign currency desks.
• The foreign exchange market is very liquid because of the daily participation by large institutions
• This high liquidity makes sustained trending more common
• High liquidity means getting in and out of positions is very easy
• Transaction costs are very low

Currencies can be traded on fundamentals but by far the most popular method for retail traders is technical analysis. Currency price action produces patterns which repeat over-and-over again with time.

Technical analysis has grown markedly since the 1970s; its popularity mirrors the growth in Statistics over the last 40 years. Traders use a myriad of indicators for trending, momentum and volatility. Our Metatrader 4 platform has all the common indicators ranging from moving averages to oscillators and so much more.

Integrated Brokerage and Charting Function
The BeamFX Metatrader 4 platform has a sophistcated charting facility which allows technical analysis of the foreign currency markets integrated with online brokerage. You do not have to switch between a broker's platform and the technical charts since both are present in the same application.

Already Comfortable with Technical Analysis?
Consider a live account. With our Metatrader 4 platform, you get tight spreads, fast execution with charting and brokerage on the same platform. Sign up here for a live account.

New to Currency Trading?
If you are new to currency trading or have traded forex before but want to explore the BeamFX Metatrader 4 platform, you can do so with our demo account. Explore the platform and trade with no real money at risk. Click here to sign up for a demo account.

We have an education service called Currency School New York, based in Midtown Manhattan, New York City. We cater for the complete beginner to the experienced trader wanting to become a money manager. Click on the icon below for more information:

BeamFX is part of the Beam Financial Group
BeamFX provides solutions for the currency investor as well as the active forex trader. The Group also has an educational arm called Currency School New York and a commodity futures portal - Beam Futures - for the investor and active trader interested in commodity futures. Visit Beam Financial Group for further details about our other great sites.