Many stocks and options traders, and even beginners, are entering the Forex market today, making it the biggest financial market in the world. Nevertheless, Forex is as risky as it is attractive. It is not uncommon for traders to lose their entire account in a few weeks and even those who last through the first month will be off the market in less than 6 months.
The hard fact is that Forex is a terribly difficult market. To start, it is open 24 hours a day, five days a week. That is in itself a big challenge for any trader. Unless you are a big bank or an investment house with hundreds of employees it will be a challenge for you to be watching your screen 24 hours a day. So, many times you find that your favorite currency pair decided to have the biggest movement right when you had to go eat. Finding a decent broker is another challenge in Forex. Many brokers aren't even regulated. Unfortunately some traders find this out the hard way, when they try to withdraw their money from their accounts.
Despite all the risks, Forex does have lots of advantages, like, for example, the leverage and the liquidity. Another plus is that trends on Forex tend to last much longer than in other markets.
So, the question is: "How can you trade Forex without actually trading Forex?". What I mean is, how can you get profit from the Forex market without even having to open an account with a Forex broker? Well, you have 2 different possibilities:
1 - You can trade with a futures broker and trade, say, the USD future instead of trading the EUR/USD.
2 - The second way is to trade ETF's(Exchanged Traded Funds). There are a few ETF's which allow you to buy or sell a currency.
The most important ETF's are those that allow you to take advantage of Forex without trading directly on the Forex market.
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