Why trade Forex with City Index?
Our performance in numbers
*StoneX retail trading live and demo account holders globally since Q4 2020.
Major FX moves and news
Mobile trading app
Seize trading opportunities with our easy-to-use mobile apps, with simple one-swipe trading, advanced charting, and seamless execution. Available on Android and iOS.
Complete with in-chart trading, custom indicators, alerts and drawing tools.
Harness the power of technical analysis and access insightful market data on our most popular markets.
Gain deeper insight into your trading and discover how you could improve your performance.
How to trade Forex
Currencies always trade in pairs – one against the other. If one appreciates in value, it does so at the expense of the other.
If you believe that a currency pair such as the Australian dollar will rise against the US dollar you can place a buy trade on AUD/USD. If the price rises, you will make a profit for every pip that AUD appreciates against the USD. If the market falls, then you will make a loss for every point the price moves against you. Our trading platform tells you in real time how much profit or loss you are making.
You can also profit from a currency that falls in price. If you think AUD will fall in price, you sell or short AUD/USD when you open the trade. Your position will stay open as long as you want it to, providing you have enough money in your account to cover the required margin.
With City Index you can trade global currencies through spot FX by trading in lots.
Learn why leveraged forex trading is popular with investors, and how the FX market works.
Take a look at how an FX trade looks in practice with our step-by-step guide.
Put our trading platform to the test
Hundreds of thousands of clients all over the world use City Index as their provider of choice. Here’s why.
Over 99% of trades are executed in less than a second. If the price moves in your favour while the order is being processed, we’ll execute your order at the better price.
With 24/5 dedicated client support, we’re always on hand to help – and 99.99% of all valid trades are executed by our market-leading trading technology.
We’re backed by Nasdaq-listed StoneX, a Fortune 100 company with over a century in the financial markets. Combined with our four decades of heritage, you’re in good hands.
From personalised performance analytics to AI-powered SMART Signals, you have a wealth of exclusive tools at your disposal to maximise your trading potential.
A market that doesn’t sleep
Foreign exchange (forex) or FX trading involves trading the prices of global currencies, and at City Index it is possible to trade on the prices of a huge range of global currencies. Currency trading allows you to speculate on the movement of one currency against another, and is traded in pairs, for example the Euro against the US Dollar (EUR/USD).
Currency markets are open 24 hours a day. There is no central exchange for trading Forex: instead prices are determined by interbank trading, the exchange of currencies between banks on a constant basis, all over the world.
The currency market is much bigger than share markets. The daily volume of global forex markets is estimated at over $6 trillion.
What moves currency markets?
- Economic data - This particularly affects critical areas of a country’s economy like inflation, unemployment numbers, foreign trade or payrolls.
- Central banks - These can have a big influence over the performance of currencies, for example by changing interest rates or printing more money. Central banks can also buy and sell their own currency in order to keep it trading within a certain level.
- Political factors - Increasingly, political uncertainty can drive currency markets. For example, the Swiss Franc has traditionally been seen as a safe haven currency. Something as banal as a speech by a finance minister can have a big impact on a currency.
Who trades currency markets?
Currency markets are important to a broad range of participants, from banks, brokers, and hedge funds to retail traders. Any company that operates or has customers overseas will need to trade FX. Central banks are also active in forex markets, as they seek to keep their currency trading within a specific range.
Frequently asked questions
Where is forex traded?
Forex is traded via a global network of banks in what’s known as an over-the-counter market – unlike shares and commodities, which are bought and sold on exchanges. Because of this, you can trade forex 24-hours a day five days a week.
FX trading is split across four main ‘hubs’ in London, Tokyo, New York and Sydney. When banks in one of these areas close, those in another open, which is what facilitates round-the-clock trading.
However, there’s no physical location where these banks and individuals trade with each other. Instead, it is entirely online.
Learn more about how to trade forex.
Why do people trade currencies?
People trade currencies for lots of different reasons. You’ve probably traded a currency if you’ve ever bought goods overseas, for example, or gone on a foreign holiday. However, the vast majority of FX trading is done for profit.
Currencies are constantly moving in value against each other. On any given day, the pound might be rising against the dollar, while the euro falls against the Swiss franc. Forex traders buy and sell currency pairs to try and take advantage of this volatility and earn a return.
For instance, if the Australian dollar is rising against the US dollar, you might buy AUD/USD. When you buy this pair, you’re buying Australian dollars (AUD) by selling the US dollar (USD). Then, if Australian dollars continue to outpace US dollars, you can sell the pair to exchange your AUD back for USD and keep the difference as profit.
Confused? See more examples of how FX trading works.
When is the forex market open for trading?
The forex market is open for trading 24 hours a day, five days a week. That means with FX, you can build your trading strategy around your schedule, instead of having to conform to when a stock exchange is open.