Top 12 Unique Benefits of Currency Trading
Forex trading market is now becoming a favorite of speculators all over the world. The forex market has a gigantic daily trading value of $5 Trillion
and it’s going on increasing as many speculative traders are joining the forex market daily and the numbers are very surprising, no doubt because trading in forex market provides so many advantages and benefits to its traders, below is the list provided
Top 12 Reasons, Why You should Trade Forex?
1. Ease of Entry i.e. Lowest Capital required to Trade a Speculative Market –
In any other stock market, or commodity market there is a fixed minimum amount required to trade or invest in a stock or commodity and further we have to maintain a minimum balance in order to keep our account running and for maintenance. In forex market, we can easily start trading by investing as low as $100 and experience the same trading benefits provided to a $10,000 funded account.
2. True 24 Hour Trading Market –
Forex market is always open on all working days and even more it is open 5.5 days every week. No matter whether it is day or night anybody can trade forex at any time. Forex market is traded electronically as, so there is no need of any physical appearance whether it would be trading currencies or any banking transaction. We can even setup a trading strategy which would be active nonstop for the whole trading week except weekends.
3. Commission Free Trading –
There is no commission charged for trading any spot forex currency pair. The only transaction cost, which we pay, is the spread between the buy and sell price. In today’s time, many forex brokers provide razor thin spreads making the transaction cost absolutely minimal. No other speculative market offers such facility.
4. High Leverage –
Leverage means the minimum margin which is required to open a trade. Forex brokers offer the highest leverage possible in the entire speculation industry. Normally forex brokers offer 100:1 leverage, but it ranges highly from a forex broker to another. Yes, we also get a leverage of 500:1 from many forex brokers which means we can control $1,000,000 trade by only investing $2,000.
5. 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).
6. Immediate Order Execution and 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.
7. Trading can be done either ways –
If we want to invest in stocks, we have to trade only one side which is we buy lower and sell it on a higher value, we cannot “short” sell if we speculate that the stock price would decline. In forex market, we can trade either ways i.e. If we speculate the currency value will rise, we can go “long” i.e. Buy and if we speculate that it will decline then we can go “short” i.e. Sell before and buy later at our desired price.
8. Unlimited Earning Potential –
The daily trading value of foreign exchange market is approximately $5 trillion and the G.D.P. of United States as on 2011 was $15.09 trillion which means forex market trades the yearly G.D.P. value of United States in 3 days. Now you can understand the earning potential in the forex market.
9. Trade from Anywhere –
Thanks to the internet and the latest technology, almost all forex brokers, provide trading software for every type of device, we can trade forex from anywhere whether it would be our laptop, tablet or any mobile.
10. No One is able to Corner the Forex Market –
forex market is the biggest speculative trading market in the world. It is backed by super-duper banks, governments, large hedge funds, corporate sectors and many more as, so it is almost impossible to corner the forex market by any single group of individuals or companies or government.
11. Recession Proof –
The foreign exchange market is a global market with superior liquidity. It is so gigantic in size that nobody can corner it as so whatever, and whenever the situation may come, the trading is still going on because the forex market does not get affected by any single country’s government policies or industries, in fact, the situations gives more chance and creates a new trend to follow in the forex market.
12. Free Trading Software, Analysis Tools, Live Quotes –
This is one of the best advantages of trading forex. For trading stocks, we have to purchase a membership of some trading software and/or charting software in order to stay actively connected with the market every second and do chart analysis, but in forex, we get this facility completely free with the help of meta trader trading platform, it is one of the best reputed and accurate trading platform in the world. We get free access to live price quotes and live charts. We can even create customized expert advisors and technical indicators to benefit from our trading strategy. Moreover, many 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.
There is no other speculative market which provides so much of benefits and advantages. I hope you would be excited to experience all these benefits and start making money from forex trading, but I would like to request you, do not hurry to trade with real money and instead open a demo account first with any forex broker and make yourself comfortable for a couple of weeks, after that as soon as you become profitable with your trading strategy, you can open up to the new world of sky limit earning capability.
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