Broker/Dealer & Investments

The forex market is the largest and most accessible financial market in the world, but although there are many forex investors, there are few truly successful ones. Many traders fail for the same reasons that investors fail in other asset classes. In addition, the extreme amount of leverage provided by the market and the relatively small amounts of margin required when trading currencies deny traders the opportunity to make numerous low-risk mistakes. There are factors specific to trading currencies that can cause some traders to expect greater investment returns than the market can consistently offer or to take more risk than they would when trading in other markets. (For a complete step-by-step guide on forex trading, check out our Forex Walkthrough.)