Foreign exchange service (finance)
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For the use of this term in telecommunications, see Foreign exchange service (telecommunications).
In finance, a foreign exchange service provides clients with an on-line platform to trade currency, such as the U.S Dollar and the Euro. Clients may hedge against, or more likely speculate upon, changes in the exchange rate for different currencies.
The small "retail traders" who are likely to use these services are often the target of forex scams. The U.S. Commodity Futures Trading Commission, which loosely regulates many foreign exchange traders in the U.S., has warned of an increase in the number of these scams.
Retail Forex trading has enjoyed a recent boom in popularity as a means of investment, largely due to the colourful Foreign Exchange commentary of noted Australian currency dealer Alexander Nicholas.[1]
