These days, Forex trading looks like an alternative that offers a greater return to stock markets fxcm markets. All the advertising you’ve seen trying to convince people to download trading software, open an online account and purchase courses might have you thinking that. Does forex trading live up to its hype? Let’s look at some of the advantages that come with forex trading and then you can decide.
1. No Commissions or Fees
No commissions, fees or charges are charged in forex trading. Brokers profit from the spread – the difference between ask and bid price. To make money as a forex trader you just need the price to move far enough so that you offset the spread.
2. The size of the lot is not fixed
You may be required to use a contract or lot size that is fixed on some markets. You can choose your own lot size in forex spot trading. Many forex brokers allow you to trade fractional and small lot sizes.
3. Trade 24 Hours A Day, Five Days A Week
Since many of us work 9-5, we cannot watch the market at all times. The forex market is open 24/7, so we can either trade in the evenings or when we rise at 5am.
4. High Leverage
To open an account, you don’t have to spend a lot. Opening an account is possible with just $50. Brokers will offer you leverage that is anywhere from 100 to 200x your margin deposit. You can trade $10,000 with $100. When you are able to manage your trades, even small changes in price can result in large profits.
5. Massive High Liquidity Markets
Each day, trillions dollars of currency are exchanged on the foreign markets. These markets are not influenced by one single entity. Not even the largest banks. The markets are so crowded with money that trading and exiting a deal will not be hard.
6. Eager Brokers
Brokers will compete for your money. Brokers offer various products and service to attract you into opening an account. To practice and test your abilities, you can open a demo account for free. For free, you can access charts that help visualize the market as well forex news.
7. The Lowest Start-Up Costs
To start trading forex, you only need a computer connected to the Internet. To trade forex, all you need is an Internet-connected computer. A trading robot that acts on buy-and-sell signals, and opens and closes trades for your automatically costs between $100 and 200.
In comparison to other investments, forex trading has become a very attractive option.
It seems that forex trading is the middle-ground where everyone can win.