Where is Forex located?

Where is Forex located?
  • Well, it’s not really located in a specific place, it’s everywhere and nowhere. It may seem confusing at first, but the principle is simple.
  • You see, unlike other markets like the U.S. stock market which is fittingly located in the, you guessed it, U.S. (Wall Street to be specific), the Forex market has no central location. Seeing how it spans multiple countries all around the globe, it would be counterproductive for it to have a central location. Remember, the Forex Market Is unlike the other markets.
  • Trading is conducted using Electronic Communication Networks (ECNs) in different markets across the world.

‘What is an ECN?

You might be asking, well, simply put, it’s the computer system that facilitates the trading of financial products. The ECN creation was authorized by the Securities and Exchange Commission in 1998.

As you can see, that way, the Forex market has no location because it simply doesn’t need one since it’s traded through this system.

Instead of a physical center, here’s what you would call a global center. Right now, London is considered the global center since it accounts for close to 35% of all trading. On the other hand, New York accounts for half of that at 17%.

With all that said, you should now have a pretty clear idea about what Forex is; in turn; you should be able to answer this very question were someone to ask you.

So, you’re interested in learning the trade (pun intended)? Well, that’s great.

Before we dive into the meat of the subject, let us clear some misconceptions that some people might have about Forex trading, and by extension trading in general.

Forex Trading won’t make you a Millionaire overnight

Don’t be misled by the fake promises of the riches that ‘await you’. You won’t be able to gain anything with that sort of mentality. You should always have realistic expectations before committing to anything in life; trading is no exception.

You’ll need to invest time and effort to be able to make gains off of trading. You should be ready to see at least a year or two before you start making profits. People who say that trading is an easy way of making money either want to scam you or simply don’t know any better.

Having said that, you should ask yourself now, are you sure you want to get into Forex trading? Are you willing to invest the time and effort required to be a successful trader? Are you ready to spend the next two years learning Forex to become a master?

If you said yes to all of the above questions, good! Now turn off any distractions and brace yourself for the journey that awaits you! We’ll be guiding in the start and laying the foundation for you to master Forex.

What You’ll Need

Getting started with Forex trading doesn’t require any expensive tools. As a matter of fact, you probably already have most of the necessary equipment already.

You’ll need a smartphone or a computer (preferably both) along with a stable internet connection and a comfortable chair because you’ll be spending a lot of time sitting on it.

Unlike what some people would tell you, you don’t really need a super powerful computer to start your journey, in fact, any computer should suffice, as long as it has been made in the last 5 years.