Foreign exchange markets exist when one currency is traded for another, similar to the manner that stocks are traded on the Internet, but at a much larger scale. The dollar can be traded for the euro, the euro for the pound, etc.

The average daily trade in the global forex and related markets are often over $3 trillion. A majority of this trading happens between very large banks, multinational corporations, financial markets, governments and currency speculators. Individuals are able to trade in foreign exchange markets, but individuals make up a very small part of the market. Individuals are only able to trade in foreign exchange markets through brokers or banks.

Individuals should be leery of forex trading opportunities. Foreign exchange markets scams are when a trading scheme is utilized for the purpose of defrauding individuals. These scams convince people that they are able to make a high profit by trading through them, but these scams are used for the purpose of generating profits through large commissions. Individuals are safest by trading through their bank or established broker. The U.S. Commodity Futures Trading Commission is responsible for the regulation of the foreign exchange markets in the United States.

Foreign exchange markets are unique as because of several factors such as trading volume, the liquidity of the market, the number of traders in the market, the longer trading hours and the different factors that affect the exchange rates of the various currencies. The trading hours for foreign exchange markets are twenty-four hours a day, except on the weekends. This is unlike any other trading that takes place in the marketplace.

The Bank for International Settlements is an international organization of the central banks. They estimate that the daily turnover in the foreign exchange markets is at an estimated $1.8 billion.