The international currency exchange rates show the units to be exchanged from one currency to another.
It is essential to note that prices of currencies can float, which means that they can change continuously but based on a lot of factors. Additionally, currency rates can be fixed to another currency.
However, knowing the exchange rates of a currency concerning other currencies assist investors or traders in knowing an asset priced by foreign dollars.
4
Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Min.Deposit
$100
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
Regulated by
FCA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
0.0
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
0.0
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
Yes
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$100
Spread min.
- pips
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
Yes
CYSEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
Yes
CBFSAI
Yes
BVIFSC
Yes
FSCA
Yes
FSA
Yes
FFAJ
Yes
ADGM
Yes
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$10
Spread min.
- pips
Leverage max
10
Currency Pairs
60
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Cryptocurrencies
Average spread
EUR/GBP
1
EUR/USD
1
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
Your capital is at risk.
Min.Deposit
$50
Spread min.
- pips
Leverage max
500
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
-
EUR/CHF
-
GBP/USD
-
GBP/JPY
-
GBP/CHF
-
USD/JPY
-
USD/CHF
-
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
For instance, an investor from the United States of America knows the value of the dollar to the euro exchange rate when choosing European investments. A decrease in the value of the USD may boost the value of foreign investments.
However, exchange rates come from different places, as the forex market is highly decentralized. In this article, we will take a detailed look at where international exchange rates come from.
- Interbank and participants
The interbank market comprises of the spot, forward, and the SWIFT (Society for Worldwide Interbank Telecommunication) market. However, market participants include commercial banks, hedge funds, big-trading companies, and other financial institutions.
The interbank market performs trade between themselves or even exchange currencies.
The market participant, such as the commercial banks also trades foreign currencies daily. The interbank market is producing the best exchange rates, so too are forex trades.
- Macro Factors
Some macro factors also dictate exchange rates in the forex market. Macro factors such as the ‘Law of One Price’ impose that in the forex market, that the price of goods in one country should equal the price of the same goods in another country.
Furthermore, if the prices of products slop, the interest rates in an economy will increase. Hence, interest rates and the related prices affect and influence exchange rates.
Furthermore, geopolitical risks also have a big say on any economy. If there is economic unrest in any country, there will be a decrease in its currency and thus affect the exchange rates.
- Floating Exchange Rates
Exchange rates are also gotten from a floating rate or a fixed rate. It is essential also to note that the open market regulates floating rates through demand and supply.
However, if there is a high demand for a particular currency, then the value of that particular currency will rise. If the currency is low in demand, then its worth will decrease.
Additionally, other factors determine the floating rates, such as fundamental and technical analysis.
These analyses affect or influence the prices of foreign exchanges in the forex market. Fundamental and technical reports also control what investors perceive as a fair exchange rate.
Final words
Most countries may use the interbank market or fixed exchange rate to maintain the rate of exchanges, and it will not work after the intraday market.
Hence, most economies make use of both the interbank market and fixed exchange rate to stabilize their economy and maintain its currency value. To also preserve its currency market, an economy also holds vast reserves of its currency to control demand and supply.