Top 9 Advantages of Trading the Forex Market
Forex Trading has many benefits and advantages, below is the list of The Top 9 Advantages of Trading the Forex Market.
1. Largest Speculative Market
Foreign Exchange Market, which is the Currency Market, also known as Forex and Fx is the largest financial, speculative market in the whole world. If we see the figures of daily turnover, the New York stock exchange has an average a daily volume of $22.4 billion, and it is comparatively very low compared with the forex market. Yes, forex market has a gigantic daily trading volume, and it is an average of $5 trillion a day. Forex rocks!
2. 24 Hour Market
Forex market never sleeps. Forex market is the flexible speculative market as it offers continuous trading for the whole week. No need to neither wait for opening bells nor get afraid of any daily opening gaps. We can trade forex whenever we want as per our convenience.
3. Superior Liquidity
In speculative markets, liquidity is the most important factor required to trade seamlessly and convert our investment profits into hard cash. Forex market offers both the important aspects. The first is huge liquidity which is provided by large banks, financial institutions, governments, currency speculators, forex brokers, and corporate sectors and the second aspect is the price quote which we get with the minimum increment possible. So we are never stuck in the market and can easily convert our profits into hard cash with a single click under normal market conditions.
4. High Leverage Trading
Forex market offers the best leverage for trading. Lower margin required to trade means we can beautifully exploit our trading strategy to get huge profits. Many forex brokers offer a normal leverage of 100:1, which ranges up to 500:1. Yes, we get the control to trade $5,000,000 by only depositing $10,000.
5. Low Transaction Costs
Spot forex is traded with zero commission and zero brokerage charges. The only transaction cost which we pay, is the spread. Spread means the difference between the buy and sell price of any currency pair. Some forex brokers now offer the spread as low as a fractional pip which is the lowest increment in the price change of any currency pair.
6. No Fixed Lot Size
While trading in any other speculative market, we have to trade in the fixed lot size which is available. Some time it becomes a little uncomfortable to hedge the positions or for a novice trader to test his trading strategy. Forex market offers this unique facility of trading currency in the desired units of our choice whether it would be to trade a single dollar or one million dollar. The standard lots available to trade are micro lot (1,000 units), mini lot (10,000 units) and a standard lot which is (100,000 units).
7. Low Minimum Investment
Forex trading can be started with very less capital than any other speculative trading markets. We can start trading forex with as little as $100 to build our confidence for achieving huge profits in the future.
8. Trading from Anywhere
We can trade forex from everywhere, whether it would be our office, our home and also while traveling. We only require staying connected to internet with our forex broker and can easily trade with our laptop, tablet or any mobile.
9. Lots of Free Stuff
Online forex brokers offer a variety of free stuff, which is helpful, to build a successful trading strategy. Free stuff includes free demo account with the real scenario, free educational books, videos, trading indicators and a lot more.
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