You would like to increase your emerging market exposure but you need a simple and effective way to invest. You like the security and accessibility of cash but you need an average rate of return better than what Treasuries can return in this zero interest rate environment. You love the growth in your equity portfolio but need access to uncorrelated returns when things turn south. The foreign exchange market, or forex, answers many of those needs and is the largest financial marketplace in the world.
For decades the forex market has been known as the market that determines exchange rates. In other words, the buying of one currency and selling of another as an efficient means of determining supply and demand. With central banks around the world granting only limited access, forex investments were difficult to access for everyday investors. This has changed dramatically. What was once a market dominated by major banks and investment firms is now the largest trading and investing community in the world.
Here are 10 reasons why forex investing is an important part of any portfolio.