Advantages of Forex Trading:
Below is a list of benefits you can get while trading Forex. This list has been prepared considering that you will mostly trade on the spot. So, here is a list that describes the benefits of Forex trading:
Advantages of Forex Trading 01 - Low Cost
In the spot market, there are usually no settlement costs, exchange costs, state taxes, brokerage fees or commissions. Retailers usually earn from the difference between supply and demand, which seems very transparent to customers. [Although they may charge a swap fee in some cases, but merchants can check it].
Advantages of Forex Trading 02 - No Broker
Spot Forex trading removes the requirements of the brokerage offer and offers interest by allowing you to trade directly in the market responsible for the prices of a particular currency pair.
Advantages of Forex Trading 03 - No fixed batch size
If you do not trade in the future or options, there is no set trading measure in the spot market. This seems to be one of the biggest advantages of Forex trading. Brokers usually offer the option of buying multiple sizes of leisure contracts, which is why you need less money to start trading.
Lot sizes can be standard, mini-series, micro-series or even a few middlemen buying nano. This makes it easier for traders to trade with very low capital (up to $ 50).
Advantages of Forex Trading 04 - Low transaction costs
Retail transaction costs (the difference between supply and demand) of demand are typically less than 0.1% below normal market costs. For larger retailers, the price difference between supply and demand can be 0.07%. [Note: It depends on the lever you use].
Benefits of Forex Trading 05 - No one can surround the market
The foreign exchange market is very large (about $ 5.1 trillion) and has a large number of participants, so no entity (not even the central bank) can control the market price for a long time. Therefore, the chances of a sudden drop or gain in the exchange rate are very low.
Advantages of Forex Trading:
Having already taken advantage of Forex trading, now is the time to discover the main advantage of Forex trading:
Forex trading uses 06 - 24 hours open market
You do not have to wait for the bell that is open daily. From Monday morning in Australia (session in Sydney) to afternoon closures in the US (session in New York), the Forex market is always opening.
This is great for those who want to trade part-time because you can choose your own time to shop: morning, afternoon, night, breakfast, lunch, dinner or in your sleep.
Foreign Exchange Trading Advantages 07 - Using Leverage and Margin
It is a feature that is attracting more and more investors to Forex trading. Forex brokers allow traders to trade in a low-impact market, which gives them the opportunity to trade more money than is available in your account.
This means that by trading currencies with a small deposit, you can control the total value of the contract much more. Leverage allows a trader to generate higher returns while minimizing venture capital.
For example, a Forex broker may offer an impact of $ 100 to $ 1, which means that a $ 25 margin will allow a trader to buy or sell currencies worth $ 2500. Likewise, it can be traded at $ 100 with $ 10,000 etc.
This may sound like a heavenly dream, but beware that using very high impact, without risk control, you can clear your balance in minutes.
Benefits of trading on Forex 08 - Very high liquidity
Because the Forex market is very large, it is very liquid in nature. This means that under normal market conditions you can buy and sell currencies directly, and there is always someone on the market willing to accept the other side of your transaction.
It also means that you can place large orders and this will be achieved without much impact on the course.
It is unlikely to be "stuck" in a transaction. You also have the option of setting up your online trading platform to automatically close your position as soon as you reach the required profit level (specific order) and / or close the trade if it conflicts with you (stop loss order).
Benefits of trading on Forex 09 - Low capital requirements
If you compare the spot market with stock trading, futures or options trading, you will realize that much less capital is needed to trade.
Regardless of the default account, many online brokers offer "small" and "small" trading accounts, which typically require a minimum deposit of $ 25- $ 50.
Forex 10 Advantages - Opportunities for the rise and fall of the market
The forex market has no restrictions on the direction of trading. This means that if you think the value of a currency pair will increase, you can buy or buy it. In the same way, you can sell or sell it if you think its value may fall.
Benefits of Forex 11 - Free stuff is available everywhere!
The most important part of trading is the availability of free tools and educational materials that can prepare you for direct trading. Here's the good news:
Most online Forex brokers offer 'demo' accounts to practice and build your trading skills. It also offers real-time Forex news and graphics services. Moreover, not all of these offers are additional costs.
With these demo accounts, you can develop your trading skills and test your strategies before opening an actual trading account and risking real money.