Invest in Forex

A beginners’ guide to investing in forex, along with up-to-date exchange rates and the latest news.

If you’re totally new to investing in forex, this page serves as a beginner-friendly guide containing everything you need to know. And for those who already know how to invest in forex, there are links to in-depth guides, educational courses, and market analysis.

By: Max Adams
Max Adams
Max has a keen interest in the transformative power of technology and is the founder of a platform called… read more.
Updated: Dec 10, 2021

Ways to invest in forex

To trade forex the first thing you need to do is register with an online broker. These platforms allow users to exchange and trade a wide variety of currencies using CFDs, so you can make trades quickly as prices fluctuate.

Before making your first forex investment, however, it is important to understand how forex investing works and the best strategies to pursue. The links below each take you to useful guides, reviews, and other resources to help you improve your knowledge and your chances of success when trading foreign currencies.

A beginners’ guide to investing in forex

What is forex?

Forex is an abbreviation of ‘foreign exchange.’ When trading forex, you’re trading two currencies against each other in the hope of profiting as the exchange rate between them changes. Currencies are the most commonly traded asset on earth, and many people’s first experience of investing is trading forex.

To give a simple example of how it works, imagine £1 is currently worth $1.40 and you believe it will soon be worth less than that. At this price you could change £100 into $140. If the GBP/USD exchange rate were then to fall so that £1 was only worth $1.32, you could buy £106.06 for your dollars – a profit of £6.06.

This is how forex investments work on a basic level, with trades being made using currency pairs (e.g. GBP/USD in the example above). The first currency in one of these pairs is the ‘base’ currency, and represents the asset being bought; the second is the ‘quote’ and represents the currency being sold.

When you see the price or exchange value of a currency pair, it is simply displaying the number of units of a quote currency that can buy 1 unit of the base currency. For instance, EUR/GBP = 0.86073 means that one Euro can buy 0.86073 Great British Pounds – making a Euro worth just over 86p.

How do I make an investment?

By far the most common way of investing in forex is to use a broker to make short term trades, but it is also possible to buy and hold foreign currencies as an asset in the long term. We’ll take you through each approach and how to decide which is right for you.

Latest forex news >

Make sure you’re always up-to-date with the latest forex news. Find the most recent articles from our team right here.

Market analysis >

Read our expert analysis of the forex markets to help spot investment opportunities. Covering all currency pairs and emerging trends, our coverage will help you cut through the noise.

AUD/USD forecast after the strong Australian jobs data
January 20, 2022
USD/ZAR forecast after the strong South Africa inflation data
January 19, 2022
Is GBP/USD a buy or sell as UK and US bond yields rise?
January 19, 2022
USD/JPY prediction after the Bank of Japan decision
January 18, 2022

Forex prices and data

Get up-to-the-second price data for all tradeable currency pairs right here.

Charts coming soon.

Forex courses >

If you want to improve your knowledge and forex investing skills, then take one of our free courses today. These beginner-friendly, step-by-step guides take you through every aspect of trading forex.

Forex Courses
Chart analysis is the projection of future price movements via the analysis of historical price movements, where historical price movements can be presented in various ways. Bar chart The bar chart, also called the Western chart, is a demonstration of price development in which for each period the highest…
Forex Courses
The popularisation of foreign exchange trading over the past decade has been something to behold. Forex (FX) is now the largest financial market in the world, with an average daily trading volume in excess of $5 trillion. Its popularity can be attributed to a number of factors: its volatility, its…
Forex Courses
Anyone new to trading forex will almost certainly have come across different offers for ‘forex signals’. Even those who have been trading for some time and have never used signals will likely still have the open question as to whether they really bring value and how to go about choosing a…
Forex Courses
A PAMM (Percent Allocation Management Module) account is a forex account managed by a professional trader – managed and invested in by multiple investors. It is a type of trust management that provides profit for all the participants: investors as well as managers and partners. Advantages of PAMM account An investor earns money…

More of the latest FX news

Fact-checking & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Max Adams
Head of Content
Max has a keen interest in the transformative power of technology and is the founder of a platform called Current Frequencies. When not at his desk,… read more.