We’ve been proud to connect independent traders to the potential of the global currency markets since 2001. Today, we continue to challenge ourselves to provide traders with what they need to succeed.
Impact FX Connect was established by a team that has worked with the forex industry for several years. Our experienced individuals collected information based on different regulated standards and ECN brokers combined with their forex trading platforms such as MetaTrader 4. Factors taken into consideration include brokerage (fees and spreads), charting facilities, online trading environment, and liquidity offered that can impact slippage. No scraping or automation is used to compare forex brokers to ensure the highest top forex broker comparisons are made. Feel free to let us know your thoughts about the forex market or our comparison tables!
It should be noted that some brokers are regulated in multiple regions. Choosing the regulated region for such global regions can impact trading such as FSA regulated brokers will offer higher leverage on retail investor accounts and the account interest rate. Protections can also be impacted when you trade forex such as negative balance protection.
Along with our top forex broker comparison tables, you can also get information on trading forex markets, trading strategies, CFDs, forex courses, and currency trading strategies.
So whether you’re a beginner looking to trade currencies for the first time or an experienced forex trader, you have come to the right place!
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We will earn your trust and loyalty by delivering an exceptional trading experience with superior execution and low consistent costs.
Quality execution on every trade
Many brokers claim to have superior execution, but do they have the numbers to back it up? We do.
Transparent, competitive pricing
Get the most out of every trade with our clear, competitive pricing. No complicated schemes, no small print.
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We set high standards for our services because quality is just as decisive for us as for our clients. We believe that versatile financial services require versatility in thinking and a unified policy of business principles.
Our mission is to keep pace with global market demands and approach our clients’ investment goals with an open mind.
Forex is a portmanteau of foreign currency and exchange. Foreign exchange is the process of changing one currency into another for a variety of reasons, usually for commerce, trading, or tourism. According to a 2019 triennial report from the Bank for International Settlements (a global bank for national central banks), the daily trading volume for forex reached $6.6 trillion in April 2019.1
KEY TAKEAWAYS
- The foreign exchange (also known as forex or FX) market is a global marketplace for exchanging national currencies.
- Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.
- Currencies trade against each other as exchange rate pairs. For example, EUR/USD is a currency pair for trading the euro against the U.S. dollar.
- Forex markets exist as spot (cash) markets as well as derivatives markets, offering forwards, futures, options, and currency swaps.
- Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among other reasons.
What Is the Forex Market?
The foreign exchange market is where currencies are traded. Currencies are important because they allow us to purchase goods and services locally and across borders. International currencies need to be exchanged to conduct foreign trade and business.
If you are living in the United States and want to buy cheese from France, then either you or the company from which you buy the cheese has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) for euros.
The same goes for traveling. A French tourist in Egypt can’t pay in euros to see the pyramids because it’s not the locally accepted currency. The tourist has to exchange the euros for the local currency, in this case, the Egyptian pound, at the current exchange rate.
One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over the counter (OTC), which means that all transactions occur via computer networks among traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich—across almost every time zone. This means that when the U.S. trading day ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active anytime, with price quotes changing constantly.