Currency trading is considered by many traders to be the purest type of trading there is. The reason for this is that the Forex market witnesses average daily volumes far in excess of any other financial market. This high liquidity means that there will nearly always be a willing counter-party to any prospective trade.
Approximately 46% of global currency trading volume passes through the UK, and about 24% passes through the US. Aside from these two main financial centres, France is in a distant third place, seeing a comparatively low 7% of global volume.
The most actively traded currency is the US Dollar which is involved in approximately 85% of all currency transactions, followed by the Euro which is involved in approximately 39% of all transactions. Other popular currencies with reasonable market share are the Japanese Yen and the Great British Pound.
The recent increase in retail currency trading volumes has been aided by the popular MetaTrader MT4 trading platform. The MT4 client terminal is available free to download and, as its popularity has increased over the last few years, so too have the number of Forex brokers who not only provide support for MT4, but also offer currency traders a combination of low dealing costs and high leverage.