More people are choosing to enlarge their investment portfolio with foreign exchange trading. Forex investments are considered high risk... but with potential for high profits.

Unlike stocks, FX is mostly a short-term market with deals opening and closing within one day or even just minutes.  The currency trader may have multiple deals open without encountering broker’s fees as Forex is primarily commission free.

Forex market makers who offer foreign exchange trading to customers make their money from the spread – the difference between the buy and sell price of a currency.

With approximately three trillion dollars transacted each day, the volume traded in the Forex market is 40 times the size of NASDAQ. The rise of e-commerce on the internet has seen the popularity of Forex as an investment grow substantially in just a few years.

Since Forex markets are located around the globe, online currency traders have the opportunity to trade 24-hours a day. Forex trading hours are from Monday morning Sydney time up until Friday afternoon New York time.

It's a liquid market as there is always a buyer and a seller. Profit is possible (not positive) regardless of whether a currency is going up or down. The volume of the Forex market and its constant flow around the world means it would be difficult for one person or organization to influence the market.

Forex often has higher margins than stocks with up to 1:200 being offered rather than just 1:2. Margin trading leverages every dollar you have by effectively "lending" you money to take advantage of the small but constant fluctuations that occur in foreign exchange.

Forex traders have different reasons for entering the market.  The combination of constant but small fluctuations in Forex rates attracts traders with differing strategies, whether they are looking for long term hedging opportunities or using leverage for short term gains.

Here are some of the key points that make Forex an attractive investment for many:

• 24 hours, 5 days a week trading
• Margin trading with high leverages offered
• Low minimum deposits means trading with small amounts of money is possible
• The Forex market is too vast to be manipulated
• It is a liquid market where there is always a buyer and a seller
• The Forex market is decentralized; it is not conducted on an exchange, and therefore takes place over-the-counter worldwide via web or phone.

Please understand that investing in Forex is risky and may not be suitable for you. However, with margin trading, Forex offers large potential profits relative to the trader’s capital (initial) investment.