Foreign exchange, Forex and FX are all names for the same thing: trading currencies. The Forex market is the largest in the world, trading over $3 trillion every day, according to ForexTrading.com. Trading within the intrabank network allows for the narrowest spreads and highest liquidity (the spread is the difference between the best buy and sell price). Banks trade within Electronic Communication Networks, or ECNs, which connect the world's leading banks together. Currently, Currenex was voted by Global Finance as the best FX Bank Trading System. It won the award as it offers prices from 70 of the world’s biggest banks. To trade within this network, all one has to do is open an account with a FOREX firm where its trades are all routed to Currenex.
Create and Fund Account, and Start Trading
Visit the Currenex website to find Forex firms that use the Currenex network (see Resources). Research "White Label Partners" and request an account that trades directly within the Currenex network, or with Currenex itself.
Choose a broker by evaluating their demo platform product and reviewing their commission structures. Forex brokers offer varying platforms. Some offer more robust charting software than others, and the appearance of their price quotes and order entry systems may differ. Basically, you get what you pay for; brokers with low commissions tend to have low-end platforms as well.
Check account minimums and fund your account accordingly.
Use trading platform to place trades within the intrabank network.
ECNs offer floating spreads. This means that the spreads of each currency pair will change. During times of increased market action, liquidity will increase and spreads will tighten, allowing for the best order executions.
During times of important economic news releases, spreads can widen and move rapidly. Trading during this time may lead to receiving filled orders at unexpected prices.