What are forex?
Forex (foreign exchange) is the market for trading one currency against another, quoted in pairs such as EUR/USD or GBP/JPY. When you trade a pair you are simultaneously buying one currency and selling the other, betting on how their relative value will move.
It is by a wide margin the largest financial market on earth, with trillions of dollars changing hands every day. That depth means the major pairs are extremely liquid, spreads are typically tight, and the market trades continuously from Sunday evening to Friday night.
How to trade forex
Retail traders access forex through CFDs or spot margin accounts, using leverage to control a position much larger than their deposit. Pairs are grouped into majors (the most traded, e.g. EUR/USD), minors, and exotics (thinner, wider spreads).
Cost comes mainly from the spread — the gap between buy and sell price — plus, on raw-spread accounts, a commission per lot, and overnight swap for positions held past the daily rollover. High leverage is what makes forex attractive and also why the majority of retail accounts lose money.
Popular forex instruments
Some of the most widely traded instruments in this market:
Best brokers for forex trading
Every broker below is regulated and reviewed against the same six-pillar rubric. Scores are on a 0–10 scale — open a review to see the full breakdown and each figure’s source.
Forex trading — frequently asked questions
Which forex pairs are cheapest to trade?
The majors — especially EUR/USD — are the most liquid and usually have the tightest spreads. Exotic pairs are thinner and carry wider spreads and larger overnight costs.
What leverage can I use on forex?
EU and UK retail clients are capped at 1:30 on major currency pairs and less on minors and exotics. Higher leverage is only available through offshore entities with weaker protections.
Is forex open 24 hours?
Effectively yes during the trading week — it runs continuously from Sunday evening to Friday night across the global trading sessions, though liquidity varies by session.
Risk warning: Trading forex through leveraged products such as CFDs carries a high risk of rapid loss. The majority of retail investor accounts lose money. Consider whether you understand how these products work and whether you can afford the risk. Nothing here is investment advice.