Why Trade Forex: The Advantage of Forex Trading Jan 9th
Forex is incredibly high risk, but it’s also very high reward. Here are just a few reasons why, if you’re a small investor, you might want to try forex trading.
No Commissions
With forex trading, most retail brokers make their money through the “bid/ask spread”. This means that you’re never charged any unnecessary fees that cut out your profits, such as: clearing fees, exchange fees, government fees or brokerage fees.
Low Transaction Costs
Plus, this transaction cost is traditionally low, and is normally under 0.1% under normal market conditions. With large dealers, such as FXPro, spreads can even be 0 per cent. However, much of this is dependent on leverage.
24-Hour Market Access
With forex, you never have to wait for the opening bell. The forex markets never stops trading, making it perfect if you’re looking to dabble around trading while focusing on your other forms of employment. You can trade after work on an evening, or during the early hours after a night shift, the forex market never sleeps and you never have to wait for the opening bell to sound.
No Market Domination
Plus, the forex market is the most liquid market in the world. The size of the market, coupled with the number of trades and active traders means that no one person (or large financial institution) can control the market price and that the market is always moving. This means that you have a high amount of power, even as a part-time, individual trader as it means that you’re never stuck in a trade.
Low Barriers to Entry
Finally, forex is a great investment opportunity if you’re only looking to dabble in the markets because it doesn’t cost the earth. Thanks to internet brokers, you can trade from almost anywhere (including the comfort of your own home). Plus, most major brokers offer “mini” trading accounts, which you can open for less than 100 dollars. If you’re not sure whether these accounts suit you, then many brokers also offer demo accounts, so you can “try before you buy” and ensure you’re making a sound investment choice.
To conclude, forex may not necessarily be the best type of investment for you, and you should be aware of the risks before you begin. However, if you’re looking to expand your investment portfolio, then currency trading could be the perfect choice for you.
Jan 9th
Forex is incredibly high risk, but it’s also very high reward. Here are just a few reasons why, if you’re a small investor, you might want to try forex trading.
No Commissions
With forex trading, most retail brokers make their money through the “bid/ask spread”. This means that you’re never charged any unnecessary fees that cut out your profits, such as: clearing fees, exchange fees, government fees or brokerage fees.
Low Transaction Costs
Plus, this transaction cost is traditionally low, and is normally under 0.1% under normal market conditions. With large dealers, such as FXPro, spreads can even be 0 per cent. However, much of this is dependent on leverage.
24-Hour Market Access
With forex, you never have to wait for the opening bell. The forex markets never stops trading, making it perfect if you’re looking to dabble around trading while focusing on your other forms of employment. You can trade after work on an evening, or during the early hours after a night shift, the forex market never sleeps and you never have to wait for the opening bell to sound.
No Market Domination
Plus, the forex market is the most liquid market in the world. The size of the market, coupled with the number of trades and active traders means that no one person (or large financial institution) can control the market price and that the market is always moving. This means that you have a high amount of power, even as a part-time, individual trader as it means that you’re never stuck in a trade.
Low Barriers to Entry
Finally, forex is a great investment opportunity if you’re only looking to dabble in the markets because it doesn’t cost the earth. Thanks to internet brokers, you can trade from almost anywhere (including the comfort of your own home). Plus, most major brokers offer “mini” trading accounts, which you can open for less than 100 dollars. If you’re not sure whether these accounts suit you, then many brokers also offer demo accounts, so you can “try before you buy” and ensure you’re making a sound investment choice.
To conclude, forex may not necessarily be the best type of investment for you, and you should be aware of the risks before you begin. However, if you’re looking to expand your investment portfolio, then currency trading could be the perfect choice for you.
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