There are several ways to Trade Forex. 
- Spot Market: The spot market is where Forex trades are executed immediately
or “on the spot”, and is ditacted by the current market price. What’s awesome about this market is its simplicity , high liquidity, tight spreads, and 24-hour operations. Anyone can trade in the spot market as you can open accounts for as low as $25. Aside from that, most brokers usually provide charts, news, and research for free.
- Futures Market: Futures are contracts to buy or sell a certain asset at a specified price on a future date.This kind of market was created by the Chicago Mercantile Exchange (CME) in 1972. Since futures contracts are done through a centralized exchange, the market is very transparent and well-regulated. Meaning that price and transaction information are readily available.
- Options Trade: Options is a tiny bit complicated and not recommended for everyone. In options trade, you are given the right or “option”, but not obligated, to purchase or sell at a specific price on the options expiry date. If you choose to sell your option, then you will be obliged to purchase or sell an asset at the specified price on the expiry date. The disadvantage in trading Forex options is that market hours are limited for certain options and the liquidity is not nearly as great as the futures or spot market.
- Exchanged Traded Funds: A financial instrument that holds an asset and trades in relation to that underlying asset, but trade similar to an individual stock. Currency ETFs offer investors in the stock market exposure to currencies. The biggest advantage is that they allow investors to diversify their portfolios without opening another account. Currency ETFs attract a diverse group of traders and are regulated by the same rules that govern the stock market. The limitation in trading ETFs is that the market for it isn’t open 24 hours.