Forex Currency Trading booming in the UK but investors still shy of Currencies says PFR

April 18, 2010 - PRLog -- Forex Currency trading is the largest financial market in the world.  To a lot of retail traders in England familiar with stocks and bond, it is relatively unfamiliar terrain.  As online internet trading became more popular a few years ago, FX was primarily the domain of large financial institutions and hedge funds ... today, traders in Britain, England, Ireland, Scotland and Wales have the opportunity to subscribe to a range of services under a one stop shop.

PFR said today that a lot of UK traders were still yet to cross the divide and enter into the world of Forex.  "Its easy to stay in what your used to"  PFR said.  

We then went on to ask PFR "How does the Forex trading for UK market traders differ from other markets around the globe or locally on say the London Stock Exchange LSE?' then...

"Unlike other markets whether it be  trading of stocks on the London Stock Exchange, London based futures market or CFD options, currency trading does not take place on a regulated exchange. Currency trading online in the UK is not controlled by a central governing body, the market for UK traders is without the clearing houses to guarantee trades and there is no arbitration panel to adjudicate disputes. Members in England will trade with each other (globally) based upon credit agreements.  Essentially, you are trading in the largest, most liquid market in the world depends on nothing more than a online handshake.  

In first instance,  this "ad-hoc" arrangement to trade seems bewildering to new to the market Forex traders who are from the background of structured market exchanges ie. NYSE , CME, LSE and ASX http://www.asx.com.au However, this arrangement works exceedingly well in practice: because participants in FX must both compete and cooperate with each other, self regulation provides very effective control over the market. Furthermore, reputable retail FX dealers in the UK or in particular in the United States become members of the National Futures Association (NFA), and by doing so they agree to binding arbitration in the event of any dispute. Therefore, it is critical that any retail customer who contemplates trading currencies do so only through an NFA member firm.

The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the GBP/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks in America. There are also no limits on the size of your position (as there are in London Sugar futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it. If your biggest Japanese client, who also happens to golf with Toshihiko Fukui, the Governor of the Bank of Japan, told you on the golf course that BOJ is planning to raise rates at its next meeting, you could go right ahead and buy as much yen as you like. No one will ever prosecute you for insider trading should your bet pay off. There is no such thing as insider trading in FX; in fact, European economic data, such as German employment figures, are often leaked days before they are officially released.

Before we leave you with the impression that FX is the Wild West of finance, we should note that this is the most liquid and fluid market in the world. It trades 24 hours a day, from 5pm EST Sunday to 4pm EST Friday, and it rarely has any gaps in price. Its sheer size (it trades nearly US$2 trillion each day) and scope (from Asia to Europe to North America) makes the currency market the most accessible market in the world."

PFR also stated that to take advantage of a Free trial in the world of Forex traders can log into their website http://www.proforexroom.com and take a free 2 week trial.  The free trial is open to people residing in the UK ie. in England, Wales, Scotland, Ireland.

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Whether your new to currency trading or a seasoned trader, proforexroom is designed to either teach or follow alongside the traders in the room. Proforexroom is a live currency trading room each day during the European fx session in English & Italian. Our products fit ideally to members who are from the UK, Ireland, Wales, Scotland and England. We trade in the live trading room during European trading session ie. 8am Central European time to 6pm Central European time with Free Forex signals included outside of those European Forex market trading hours