7 Forex Trading Benefits
In today’s modern world, the forex market seems to be a more lucrative option than trading on the stock exchange read more here. You might think so because of all the ads you see trying to convince people to sign-up for their account, use their trading software and purchase their courses. Is foreign exchange trading as profitable as the media makes it out to be? We will examine the advantages to forex trading, and you can make your own decision.
1. No commissions, fees or charges
Forex trading does NOT charge any commissions. Brokers profit from the spread – or difference in price between the ask and bid. You can make money by ensuring that the exchange rate moves enough.
2. There is not a fixed size for lots
Certain markets like commodity derivatives may require a minimum lot size. You are free to choose any lot size when trading spot forex. Forex brokers offer fractional, small or even tiny lots.
3. Trade 24 Hours A Day, Five Days A Week
We can’t watch the market while working. We can start trading after work ends or at five o’clock in the morning.
4. High Leverage
Opening an account doesn’t cost much. Opening an account is as easy as $50. Brokers typically offer leverage that is between 100 to 200 times the margin. This means that you can buy $10,000 worth of stock for $100. If you’re a successful trader, small changes in prices can lead to huge gains.
5. Massive High Liquidity Markets
The forex is a global market that deals with trillions dollars per day. These markets are beyond the reach of even large banks. Trading is very popular and it’s not difficult to get in and out of positions.
6. Eager Brokers
Brokers compete against each other to get your business. For you to sign-up for an account they will offer a range of products and service. Demo accounts give you the opportunity to practice your trading without risking money. Free charts are available for analyzing market trends and the latest forex news.
7. Costs to start up are low
The Forex market is easy for beginners to grasp. The only thing you need to start trading is a computer connected to the Internet. Trading robots are available for $100 to $200. These trading robots act on signals sent by the market and will open or close your trades automatically.
Forex is an attractive investment option when compared to other investments. Trading futures can require an initial deposit of at least $5,000, and it’s high-risk volatile prices may be difficult. Stocks are the opposite. They may take too long to trade and we get bored.
The forex market has the potential to benefit all of us.