As a method of earning income, the stock exchange is losing out to forex discover more here. All the ads that you see everywhere may lead you to believe this. They want you to download their software, open an online account and purchase their courses. Forex trading may sound great, however is it all that good? We will look at some of the benefits that forex trading offers.
1. No Commissions and Fees
When trading forex, there are no commissions or fees to pay. Brokers are paid by the spread. This is the price difference between ask and bid. For forex traders, they only have to monitor the price movements to see if there is enough movement to cover their spreads.
2. No fixed lot Size
On some markets, such as the commodity futures market, you are required to trade a particular lot size or contract. The size of the lot is up to you when trading spot forex. Brokers provide fractional and small lot sizes.
3. Trade 24 Hours A Day, Five Days A Week
Since most of us work 9-5, we cannot monitor the forex markets while working. Forex is accessible 24 hours a days, so you can trade whenever suits you.
4. High Leverage
To get started, you don’t require a lot of money. Opening an account can be done with just $50. Brokers may offer 100-200 times the margin. You can control up to 10,000 dollars with just $100. By managing your trades, you can make large gains.
5. Massive High Liquidity Markets
The forex exchange market trades trillions in dollars every day. No one can influence the price movement on forex markets. Because there is so much cash floating around, it’s very easy to get into a trading situation or exit from one.
6. Eager Brokers
Brokers are competing for your attention. Many brokers will offer you many services and products in order to get you to sign up for an account. Use a demo account for free before you use real money to improve or learn your skills. You can download free charts that help visualize the Forex market as well as get up-to-date Forex news.
7. Reduction in startup costs
Trading forex is simple. A computer with an Internet connection is all you need. Trading robots cost between $100-200. They automatically trade based on the buy/sell signals you send.
When compared to the other types of investment, forex trading appears very attractive. You might need to invest at minimum $5000 in order to trade futures. The price fluctuations can be volatile and risky.
You can benefit from trading forex.