The foreign exchange market is the largest financial market in the world, with a total market capitalization nearing the $2 quadrillion dollars and operating 24 hours a day, 7 days a week.
The daily trading volume of this massive market is estimated to be around $7 trillion and such a large amount of capital flowing through brokers all over the world has attracted the interest of forex traders for years.
Nearly 80% of forex market transactions are processed by hubs located in the United Kingdom, the United States, Singapore, and Hong Kong, even though Australia also has its own financial centre for forex transactions.
There are 170 currency pairs in the forex market and the most traded ones feature the US dollar (USD) as the base currency, while the most popular counter currencies include the Japanese yen (USD/JPY), the pound sterling (USD/GBP), the euro (USD/EUR), the Canadian Dollar (USD/CAD), the Australian Dollar (USD/AUD), and the Swiss Franc (USD/CHF).
It is important to note that not a high percentage of forex traders are successful in this endeavor due to the inherent complexity and volatility of this financial market. In fact, statistics show that nearly 71% of retail traders lose money in the forex market, while the remaining 29% is not able to sustain their profitability for more than 4 quarters in a row.
However, that should not discourage you from becoming a forex trader as an Australian. It just goes to show that this is a challenging activity, like any other, that requires effort, training, and discipline to become a profitable venture.