What is forex trading?
Forex trading allows you to speculate on the movement of currencies by buying or selling the exchange rate of one currency against another. For example, if you believe the euro will strengthen against the US dollar, you buy it or go long, with the aim of making a profit from every rise in the exchange rate.
Why trade forex?
Forex is one of the world's largest and most exciting financial markets with multiple trading opportunities every day. Plus, when you trade with us, you'll have access to commission-free trading, a choice of fixed or variable spreads depending on your platform preference, low minimum deposits, and customisable leverage up to 30:1.
How to trade forex
Forex trading is simple - you buy if you expect the base currency (first currency) in your chosen pair to rise against the counter currency (second currency). Alternatively, you sell if you expect it to fall.
Take GBP/USD, for example: you buy the first currency in the pair (GBP) while simultaneously selling the second currency in the pair (USD) on expectations that the price will rise in value and your profits will rise in line with any increase in that price.
Of course, if you buy and the price actually falls, you'd suffer a loss for every pip move below your entry price.
Alternatively, selling a currency pair simply means that you sell the first currency in the pair while simultaneously buying the second currency in the pair on expectations that the price will fall.
Our forex markets and spreads
As a City Index client, you'll always get the tightest spreads and prices when you trade with us. You also get the opportunity to trade with us using either City Index’s award-winning proprietary suite of Advantage Trader platforms, or the world’s most popular FX-trading platform MetaTrader 4.
We offer some of the industry's most competitive retail forex spreads and prices on major, minor and exotic FX pairs, including GBP/USD, EUR/USD and USD/JPY.