An article in the Wall Street Journal, Currency Markets Draw Speculation, Fraud [free], talks about day trading in the foreign exchange market. The story focuses on Marc Coppola, one of my favorite Q104.3 DJs, who apparently also dabbles in trading foreign currency.
To summarize, this type of trading has grown in popularity despite its risk. However, at least one person interviewed in the article believes it is less risky than trading in stocks since larger currency cycles tend to be easily apparent.
The two currency exchanges mentioned are Gain Capital, the broker used by Marc Coppola, and FXCM (ForEx Capital Markets). I signed up for a free visitor account at FXCM a while ago, but didn’t look into it much. That company offers a mini-account that will let you get started with as small an initial investment as $300.
It might be worth it to experiment a little.
Updated February 6, 2012 and originally published July 26, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.