Forex Trading
Trade Forex like EUR/USD, AUD/USD and USD/JPY at City Index with fast execution and tight spreads.
Forex is the world's most liquid and heavily traded market with over $5 trillion traded daily.
- Tight spreads from 0.5 points
- Trade on 84 global FX pairs
- FX margins from 0.2%
Trade on 84 currency pairs
Trade wherever you are, on our fast, reliable platforms
Customisable charts
Powerful platforms
Actionable trade ideas
Trade anytime, anywhere
Trade on over 4,500 markets
How to trade Forex
FX CFDs
Best for
FX and multi-asset trading
Trade type
Buy/sell CFDs
Trade on
Global indices, FX, shares, commodities & more
Commission
Commission free apart from shares
Platform
Web, mobile and advanced platforms
Demo
Yes
FX on MT4
Best For
Trading on MT4 platform
Trade Type
Lots
Trade On
Spot FX and limited selection of CFDs
Commission
Commission free
Platform
MT4 desktop, mobile and tablet
Demo
Yes
Why City Index?
City Index
Why trade Forex?
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 prices rises, you will make a profit for every point 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 falling currency. If you think that the Australian dollar will fall in price, you place sell 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 deposit.
Learn how to trade Forex
How to analyse markets
How to identify trading opportunities using City Index's research tools
Managing risk
Learn techniques to improve your trading and manage risk effectively
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Forex trading explained
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).
A market that doesn’t sleep
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 $4 trillion.
Currency pairs
Currencies are traded in pairs – this means you can only trade one currency against another. You can’t trade a currency in isolation. Each currency has its own three letter code, for example, the US Dollar is abbreviated to USD.
Most currency trading features one of the following as part of a pair:
|
US Dollar |
USD |
|
Euro |
EUR |
|
Japanese Yen |
JPY |
|
British Pound |
GBP |
|
Canadian Dollar |
CAD |
|
Australian Dollar |
AUD |
|
Swiss Franc |
CHF |
Taking a typical currency quote, here we have the USD/JPY pair. This shows how many units of the currency on the right, in this case the Yen, you can buy with the currency on the left, namely the US Dollar.
If traders are positive on the prospects for the Yen, they would expect the number on the right to go down – i.e. the Yen would be getting stronger against the Dollar. Traders would be buying less Yen with a Dollar as the Yen got stronger. Similarly, if the Yen was expected to weaken, forex traders would expect the Yen number to go up, reflecting the fact that the dollar could buy more yen.
Currency markets never decline in absolute terms – for one currency to go up, there will be others weakening against it. All currencies cannot go up at the same time. There is always going to be a loser.
Who trades currency markets?
Currency markets are important to a broad range of participants, from banks, brokers, hedge funds and investor traders who trade FX. Any company that operates or has customers overseas will need to trade currency. Central banks can also be active in currency markets, as they seek to keep the currency they are responsible for trading within a specific range.
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.
Trading FX with City Index
- When trading with City Index, you are not buying or selling actual currency – rather you are speculating on the price movement between FX pairs.
- City Index offers prices on all the major currency pairs as well as many minor currencies.
- Spreads start from 0.5pts on some major currency pairs.
- You can trade FX with City Index through a CFD account or FX on MT4.