A Division of Commodity Futures & Options Service, Inc.
   FOREX BROKER  /  COMMODITY FUTURES BROKER  /  OTC METALS BROKER
    Investment Opportunities in Global Commodity Markets Since 1988

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We broker commodity futures, broker forex spot, broker forex options and broker OTC metals. For all of your online forex broker, online forex options broker, online OTC spot gold broker, online OTC spot silver broker and online commodity futures broker needs you only need one broker - CFOS/FX.  All of the professional brokers at CFOS/FX are licensed by the National Futures Association and are qualified to provide you with the following services: forex broker, forex options broker, commodity futures broker, commodity options on futures broker, OTC spot metals broker, OTC spot metals options broker and forex and futures consulting.  Commodity Futures and Options Service, Inc. is located in Houston, Texas. CFOS/FX provides both online and telephone brokerage services to retail and commercial clients.  Customer satisfaction is our top priority and we look forward to having you as our client.

INTRODUCTION TO FOREX

"Forex" and "FX" are simply abbreviations of "foreign exchange" and refer to over-the-counter currency markets.  Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined).  The forex market is a cash interbank/interdealer market.  In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk.  The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC).  Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide.  CFOS/FX clients can trade through online forex trading platforms and/or over the telephone.  CFOS/FX clients should note that the respective FCM/OTCFX Dealer holding customer funds acts as the counterparty to customer trades.  Therefore, the customer is transacting in an over-the-counter market, but may not be trading in the true "interbank" market.  It is important to recognize this difference.

Until recently the forex market has not been available to the small speculator.  The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator.  However, online margined forex trading has now been made available to many retail investors.  It is important to note that high leverage is a double-edge sword and can lead to large losses as well as gains.  For more information about margins and leverage, please click the following link: how margins work.  

Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound.  The foreign currencies are traded in pairs, also known as crosses, in the forex spot market.  For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar.  Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar.  The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days.

Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated.  New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies.  Today, supply and demand for a particular currency is the driving factor in determining exchange rates.  Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency. 

Please note: daily trading volumes of NASDAQ and NYSE were obtained from Bloomberg.com; daily trading volume of forex was obtained from the Bank of International Settlements (BIS) survey released in September 2004.

*Disclaimer: Foreign exchange trading, foreign exchange investments and commodity futures trading and investments are not suitable for everyone.  Forex trading and commodity futures trading carry a high level of risk and the possibility exists that you could sustain a loss of all or more of your currency trading or commodity futures trading investment.  Before you decide to trade foreign currency options, trade foreign currency spot markets or trade commodity futures you should be aware of all risks associated with currency trading and futures trading.  If you would like more information about the risks of forex trading, commodity futures trading and of online forex trading and online futures trading, please contact a CFOS/FX futures and forex broker to discuss online foreign currency trading risks and/or commodity futures trading risks in detail. 

CFOS/FX is a futures and forex broker offering online forex trading platforms in both spot forex and forex option trading markets as wells as OTC spot gold, OTC spot silver and commodity futures.  The professionals at CFOS/FX broker forex spot contracts and broker forex option trading for both individual and commercial futures and forex clientele.  CFOS/FX, as an entity, acts only as a futures and forex brokerage and does not actively manage futures or foreign currency trading accounts for clients.  Regarding forex markets, CFOS/FX is a forex option broker and a spot forex broker acting an the Introducing Broker; CFOS/FX does not act as counter-party for client forex trading or forex option trading.