24-hour trading – The Forex market is a true 24-hour market. This means that a currency trader can basically choose his/her own hours to trade.
Low minimum investment – Trading currencies requires a lot less starting capital than day trading stocks. You could even get started with as small an initial investment as $250 USD or even $100 USD!
High leverage – A leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 (50% margin requirement) in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.
Easy trades – Forex traders need to concentrate only on a few currencies rather than on thousands of stocks.
Superior liquidity – The foreign currency exchange market is the largest financial market in the world, which means fair prices and narrow spreads for traders.
No commission or transaction fees – It is much more cost-efficient to trade Forex in terms of both commissions and transaction fees when compared to trading in other markets.
Can make money in rising and falling markets –There are no restrictions to sell currencies short. This means that as a Forex trader you can make money just as easily in rising and falling markets.
Better for trading in after-hours – For example, stock liquidity is reduced after regular trading hours. Foreign exchange trading does not exhibit this problem because the currency market is open around the clock
Free market place – Foreign exchange is perhaps the largest market in the world with an average daily volume of US$1.4 trillion. That is 46 times as large as all the futures markets put together! With the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency.
Low minimum investment – Trading currencies requires a lot less starting capital than day trading stocks. You could even get started with as small an initial investment as $250 USD or even $100 USD!
High leverage – A leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 (50% margin requirement) in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.
Easy trades – Forex traders need to concentrate only on a few currencies rather than on thousands of stocks.
Superior liquidity – The foreign currency exchange market is the largest financial market in the world, which means fair prices and narrow spreads for traders.
No commission or transaction fees – It is much more cost-efficient to trade Forex in terms of both commissions and transaction fees when compared to trading in other markets.
Can make money in rising and falling markets –There are no restrictions to sell currencies short. This means that as a Forex trader you can make money just as easily in rising and falling markets.
Better for trading in after-hours – For example, stock liquidity is reduced after regular trading hours. Foreign exchange trading does not exhibit this problem because the currency market is open around the clock
Free market place – Foreign exchange is perhaps the largest market in the world with an average daily volume of US$1.4 trillion. That is 46 times as large as all the futures markets put together! With the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency.
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