Last update 2020.10.19
Forex is a market in which you can trade currencies that involves the purchase of one currency and the simultaneous sale of another. For example, the US dollar (USD) and the Japanese yen (JPY) are known as the USD/JPY 🇺🇸🇯🇵 pair or fx symbol.
🎯 Regardless of your experience level in trading, our mission is to help you invest efficiently in forex and improve your results. Get extra valuable forex trading ideas from leading finance experts on the trading Academy and our free forex Telegram channel.
💹 When trading forex, we suggest you consider long term results.
What you can learn ahead 🎓
- Forex market definition
- Important terms used in the forex trading environment
- How to trade forex efficiently with AI trading.
- What are the best forex brokers to trade?
How forex trading can provide such great returns or losses 📈📉
Due to the use of leverage, traders can earn or lose 100% of their capital in just a few minutes, making risk-management crucial.
Forex investors do not physically buy dollars or yen, but a monetary exchange ratio between them, based on the exchange rate for the USD/JPY 🇺🇸🇯🇵. An investor that bought the USD/JPY will need to subsequently sell the pair to exit their trade and receive any difference as a profit or loss, depending on the appreciation of these currencies.
As the exchange rates for currencies (dollars, euros, pounds, etc.) vary freely, under the influence of political events or economic factors, there is potential for investment strategies that aim to profit from these fluctuations.
The forex market also allows protection strategies against exchange rate fluctuations, through the use of hedging. The ability to hedge can be particularly useful for those with income or expenses which are affected by a specific currency quote, such as exporters.
In the case of individuals, this need to hedge may arise when an investor knows they’ll have an expense in foreign currency at a future date, and wants to remove any exchange rate risk, or profit, in the case of a price change by that future date.
Who operates the forex market?
The forex market is the largest in the world. According to the BIS –Bank for International Settlements – Forex has on average, a daily trading volume of $5 trillion (200 times bigger than NYSE).
The second point is that forex is a decentralized market and the trading operations are scattered across various financial centers around the world.
Since the forex market has no physically structured headquarters, it is simply based on an interconnected network of institutions, including banks. Forex market trading is formed by transactions between the financial institutions operating in it.
Forex is therefore an Over-The-Counter (OTC) market, as transactions are conducted directly between the parties electronically, including through telephone and internet networks.
Forex markets are open 24/5, trading almost all currencies in the world. The biggest forex trading volume comes from the major pairs, which include the EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, and NZD/USD currency pair.
Who regulates the forex market?
Despite being an international market, brokers that offer investments in forex are registered with government agencies in the countries in which they operate:
Is forex trading suitable for me?
Forex may not be suitable for everyone. It is for those who can afford to speculate with risk capital or who need to deal with foreign currencies, such as for their businesses.
In fact, people and companies interested in trading in currencies, such as importers and exporters, also operate in this market to meet their foreign currency needs, including hedging their currency exchange rate exposure.
Due to its peculiar characteristics, however, most of the trading volume is from large banks and institutions, and then from investors seeking to profit or speculate.
Speculators look for the more liquid currencies, in order to realize their strategies in search of better profitability, that is:
The most traded currencies, can facilitate the accomplishment of advanced trading operations.
In the past, only banks and institutional investors had access to the forex market.
With technological development and the increasing globalization of financial transfers, forex has become accessible to individual retail investors at an increasing rate over the last few decades.
You don’t need to be a professional to invest like one in Forex. With Wiseinvest we believe you can reach returns above the forex market average, while saving time and potentially nights of sleep.
Why you should consider forex trading
An important point to resolve when planning to become a trader is to decide where to invest. There are several financial instruments to consider, such as Stocks, Forex, Bonds, Treasury bills, Savings account, real state, and so on.
To help you decide, take a look again at the key features of forex trading:
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- With an average daily volume of $5 trillion, forex is the largest and most liquid financial market in the world.
- Due to the large volume, forex offers great opportunities to invest.
- Due to a wide variety of existing Forex brokers, Forex has become increasingly affordable.
- You can start trading forex from just $1 or with a risk-free practice account with a lot of forex brokers.
- It’s possible to invest automatically in forex with AI trading.
- Portfolio diversification. Forex is used as a hedging instrument by large hedge funds. This means that you can also consider forex trading as a protection for your investment portfolio.
So, are you thinking about investing? Think of forex as part of your capital allocation.
The most traded Forex pairs
Do you know which are the most traded forex pairs? Here is a review of a survey conducted by the BIS bank.
- The US Dollar (USD 🇺🇸) is the most popular forex trading pair, with 88.3% of global trades involving the ever-reliable greenback.
- The second most popular currency in the forex market is the Euro (EUR 🇪🇺), accounting for 32.3% of trades.
- The Japanese Yen (JPY 🇯🇵) comes in at third place, with 16.8% of all trades involving this currency. However, the Japanese Yen’s share has dropped 5% in the last three years.
- Currencies that belong to emerging market economies contribute to 24.5% of all forex trades. This constitutes a rise of 4% when compared to the last BIS Bank survey, which was conducted in 2016.
- The British Pound Sterling (GBP 🇬🇧) accounted for 12.8% of all trades in 2019.
- The Australian Dollar’s (AUD 🇦🇺) share in global forex trading remained at a stable 6.8%.
- The Canadian Dollar (CAD 🇨🇦) and Swiss Franc (CHF 🇨🇭) each accounted for roughly 5% of forex trading in 2019.
- Trading in Chinese Renminbi has seen an increase that was in line with aggregate market growth. The Renminbi is at one side of 4.3% of all forex trades.
- The Hong Kong dollar has seen a surprising increase in the overall share of the forex market in the last three years. The HKD’s share has doubled from 1.7% in 2016 to 3.5% in 2019.
- The New Zealand Dollar (NZD 🇳🇿) has retained an unchanged percentage of the market – with 2.1% of all transactions involving this currency both in 2016 and 2019.
Would you like to learn more about the best forex pairs to trade? Click here to learn more.
The best way to trade forex
Regardless of your experience level, there are two ways to efficiently invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $1.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI moves as shown by the period and can reach up to 95%. The introduction relies upon the capable wild estimation metric, which infers that our model is valuable at whatever point the Win Rate is more noticeable than 60%. All methods of our AI trading system search for stable returns and sufficient results to achieve an ordinary return of 40% consistently (APY), without the usage of high impacts.
We appreciate that what is significant in forex trading is the definitive result. Thusly, the money related master needs to consider that Win Rate isn’t commonly the best estimation to measure execution in forex, as other signals providers uncover. For instance, out of 100 trades, solitary 1 trade may be an adequate disaster to make the 99 trades not gainful. For this circumstance, the Win Rate would be 99%, yet the convincing result would be unfeasible (negative).
We revolve around the appearance of 40% of APY and not just on Win Rate.
It is essential to see that forex brokers may charge spreads, commissions, and overnight costs in your trading account, and these components can impact the AI execution. You can check our forex trading history to see more about AI trading execution by clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI signals or AI trading records and make a store from just $1 in the brokerage. It is moreover possible to test using a danger-free practice account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100. Notice that some forex traders require assorted beginning stores to trade forex.
What is the trading strategy of our AI?
Our AI methodology is the blend of different AI trading structures, with more than 100 features, that portray 40 particular procedures which simultaneously consider: Quotes of the 28 forex pairs, Supports, and Resistances in different timeframes, Trends and Counter-designs, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI looks at those fundamental, technical, and sentiment factors that impact forex trading, and all models are surveyed constantly using different burdens. In the wake of completing the examination, the choice of the signal transmission procedure is made considering the improved likelihood of flashing advantage and the total open for theory.
Using technical analysis, our count considers not simply the instances of various examples, including sponsorship and deterrent levels and cross-pointers, yet our AI is moreover prepared to make its own progressing record for each cash pair, that is used to recognize what is the best course and target.
Practically identical to fundamental analysis in forex, the AI makes an association inside the budgetary calendar to find news data that can impact express money sets.
- With an average daily volume of $5 trillion, forex is the largest and most liquid financial market in the world and offers great opportunities to invest.
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- Due to a wide variety of existing Forex brokers, Forex trading has become increasingly affordable.
- Wiseinvest provides the best AI trading solutions for forex. You can trade automated from just $1 through partner brokers with AI trading or manually with AI forex signals in the forex broker of your choice.
- You can invest in forex with automated AI trading or AI forex signals for free.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.