There are fundamental differences between the forex market and other investment markets. A good trader should be able to handle any type of market, no matter the difference, but the forex market does have some unique structural differences that, while many traders find them very advantageous, do come with a certain amount of risk.
Unregulated
The forex market is pretty much unregulated because of its global nature. The interbank market has a truly global reach, so cross-border regulation can be quite challenging. Some central banks, like the US Federal Reserve and European Central Bank, do oversee some of the market, but there is very little regulation. This can be both an advantage and disadvantage.
No Exchanges
There is some exchange-based trading in forex via futures but generally speaking there are no exchanges. This decentralized trading environment is appealing to some day traders. There is no regulated exchange therefore all traders trade with each other based on credit agreements. This can lead to great returns as well as great losses.
Instant Execution and Market Transparency
Forex allows for quick order execution, instant confirmation, and quick returns. In most cases, you will be trading via the internet, though it is possible to trade over the phone as well. The forex market has great transparency, which is desired in any trading environment. Because there are no delays, no floor traders, and high volume, forex is an exciting investment vehicle.
24-Hour Trading
The forex market is a 24-hour market, which is open six days a week, which means investors have the opportunity to trade almost every day. The range of the forex market offers a lot more opportunity for quick returns on investment.