In investment terminology, the term Forex Account refers to a type of financial account that holds deposits in one or more currencies made with a financial institution or broker for the purpose of speculating on movements in the foreign exchange market. A Forex Account is similar can also be known as a foreign exchange trading account.
For example, a Forex Account might be used by retail currency traders who will typically fund their Forex Account held with a broker in order to execute transactions and hold positions in the foreign exchange market on a margin basis. Many online forex brokers have opened in recent years to provide Forex Account services and an Internet based currency trade execution facility to retail and institutions clients via their supported electronic trading platforms. Such online brokers typically offer several different Forex Account types to suit different trading needs and portfolio sizes, as well as demo forex trading accounts for those who wish to practice currency trading before committing real funds.