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WHAT IS FOREIGN EXCHANGE TRADING?

Simply put is the concurrent buying of one, and selling of another currency. The Foreign Exchange  market is the largest and most liquid market in the world, with daily volumes exceeding $1.4 trillion. To put this numbers into perspective, the estimated annual turnover in the stock markets is currently 21 trillion U.S. dollars per year compared with the same turnover in just 16 days on the foreign currency exchanges.

The FOREX market has no physical location or central exchange. It is in fact an over-the-counter market operating through an electronic network where individuals trade one currency for another. FX trading takes place in all the major financial centers worldwide, including New York, London, Frankfurt, Sydney and Tokyo. This global 24 hour trading activity creates one interconnected, international market, resulting in unparalleled liquidity. The FX market is the perfect market for the active trader.


The majority of the global foreign exchange trading takes place in the Interbank market. The Interbank market is the unregulated international trading of foreign currencies between banks, and is what determines the foreign exchange rates. Due to the fact there are no regulations, price manipulation, wide spreads and gaps of liquidity plus a number of other abuses created an uneven playing field. This resulted in making it extremely difficult for the smaller institutions and retail client to participate in the FOREX market.

To alleviate some of the concerns regarding the lack of regulation in the FOREX market, COES has chosen to become a member of the National Futures Association (NFA) and is registered with the Commodities Futures Trading Commission (CFTC). All NFA members are audited on a regular basis. The NFA’s timing and frequency vary depending upon a number of factors, including the amount of money a firm has under management, customer complaints received, or concerns noted during their review of Disclosure Documents or financial statements filed with NFA.

NFA audits are the cornerstone of a self-regulatory process that continues to benefit the futures industry by creating investor confidence and market liquidity. Over the years, NFA has refined its approach to examinations to make them as efficient as possible, while maintaining high internal quality standards and addressing changing industry rules and standards.

Until recently the only way an investor was able to gain access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Now, with the COES Level 1™ Trading Platform and COES Electronic Currency Network, anyone can trade in the FOREX market. COES enables the smaller institutions, and investors access to liquidity provided by the Interbank market as well as all participants on the network.

COES Level 1™, provides day-traders, fund managers, and institutional investors alike with the ability to profit from the benefits of FOREX trading. COES brings FOREX trading to the retail client.

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