Foreign-exchange trading is a relatively complex system that involves buying and selling currencies from different parts of the world. This marketplace is believed to be the most liquid (or relatively easy to trade related to the movement of money) in the world. There is no need for a middle-man because individual investors are able to get accounts and trade against large banks and hedge funds, which have their own forex trading departments.
Three main types of trading accounts exist in the forex market. These accounts include, managed, mini and standard. Each of these accounts have their pros and cons and the selection of the account depends directly on the initial size of the investment, risk tolerance and the amount of time a trader allots to trade the market daily.