he forex market can speak for itself, so there is no need for an introduction. Let’s see why Forex is the preferable market for so many people?
1. Forex is stable.
It is a well-known fact that any financial market carries a serious risk of possible collapse.
However, unlike other markets (stocks and commodities), Forex is protected from the risk of collapse due to the specifics of its commodities, in particular, the currency, which is the most liquid and reliable trading instrument.
2. Forex is available to everyone.
Thanks to the Internet, traders can make deals with customers from other countries and do it from every spot in the world.
(Ok, we exaggerated, NOT every spot in the world will work for you. If you are in Antarctica it might be a bit of a problem if you want to trade.)
What’s more, is that you don’t need a ton of money to start trading.
Online forex brokers offer “mini” and “micro” trading accounts, some with a minimum account deposit of $100.
If you have money aside that you don’t need, then start with a bigger capital of course, but even if you don’t have so much money, you can open an account and try your skills.
3. No commissions
There are NO exchange fees, NO government fees, NO brokerage fees.
Retail brokers don’t charge you, but they profit from the spread( the difference between the bid and ask price).
The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions.
A 24-hour market
You get the best price because you can react before everyone else as soon as you hear the news.
It is always open! It all depends on you whether you want to trade in the morning or during the night, you just need to choose a session you want to trade in and which timezone is more comfortable for you.
Leverage is one of the main weapons from the list of forex benefits.
When using leverage, you can buy or sell up to 500 times more funds than you actually have.
In this way, more significant profits (or losses) can be easily generated even without having a large amount of capital at your disposal.
Don’t forget though that without proper risk management, this high degree of leverage can lead to large losses instead of profits.
Forex is the biggest and most liquid market in the world. Let’s remind you of the trading volume per day – £6.6 trillion.
Under normal market conditions, with a click of a mouse, you can instantaneously buy and sell at will.
Software advances are definitely one of the most important benefits of forex trading. While most futures, stock and options brokers provide you with platforms developed years ago, forex brokers provide the latest trading platforms.
Most online forex brokers offer “demo” accounts, There you can practise trading before you deposit and risk your real money.
It needs time to build your skills, DON’T skips this step and create a demo account first! Nobody is charging you anyway!