Tuesday, September 1, 2009

How Can Foreign Currencies Be Traded?

Currency exchanges can be handled on three different levels. You will need to use a broker or a brokerage firm that allows trades through one of the following:

The Commodity Futures Trading Commission (CFTC)
Securities and Exchange Commission (SEC)

There is also what is called the off-exchange (over-the-counter) market. An example of this would be that you return from your vacation from Canada and trade your cash in for American dollars. This is only on a retail level or corporate level. Off-exchange trading is subject to very limited regulatory oversight.

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