What is Forex?
Welcome to the world’s SIMPLEST answer to the question of “What is Forex?”. A lot of what you find online is overcomplicated for the purposes of someone completely new to Forex, here is our attempt at a 1 minute explanation.
You know that there are different currencies around the world, right?
You also know that these currencies have different values in relation to one another, for example £1 GBP = $1.55 USD, and that those values change over time, right? So for example a month from now, £1 GBP could be = $1.56 USD
Over time, a Forex Trader aims to profit from these changing values by buying and selling currencies at different times. Forex is a great small investment idea and can serve as an alternative to Zoopla, RateSetter etc.
There are a wide range of approaches, methodologies and system to help Forex traders achieve this aim, and many would say that it takes YEARS to become an experienced, successful trader.
Many people ask “is Forex riskier than stocks?” or “is Forex a scam?“. Forex is not a scam, but like most investments opportunities that offer a better rate of return than standard bank interest rates, there is a degree of risk, the value of your investment can fall as well as rise. Forex traders aim to control these risk factors by applying good risk management. Take a look at What are the risks? to learn more.
This site aims to introduce the topic of Social Trading Platforms, these are systems that let users benefit from the expertise of successful, experienced investors.