There are many benefits and advantages of trading Forex. These are just a few reasons why so many people have chosen this market:
There are no commission fees (no Commissions)
No payment fees, no exchange fees, no government fees, no brokerage fees.
Most floor brokerage transactions to offset their services through difference deviation buy and sell (bid - ask spread).
No intermediate
Trading spot eliminating middlemen and allows you to trade directly with the market responsible for the valuation of individual currency pairs.
No fixed volume of transactions
In futures contracts, trading volume is determined by material exchange. A standard volume for silver futures is 5000 ounces of silver. In spot trading, you manually specify the volume. This allows investors can participate in the financing clause only $ 25 (we'll explain later why financial accounts Actually $ 25 is not a good idea)
Low cost exchange
Single exchange fee (bid ask spread) is essentially less than 0.1% compared to the normal conditions of the market. In these exchanges, big, can spread as low as 0:07%. This will depend on your leverage, and we'll explain later.
The market operates 24 hours
A special feature of this market is that you do not need to wait for the opening bell. 2nd morning opening at 6 pm Australia to play in New York, forex market never sleeps.
This is great for those who want to trade part-time, because you can choose when you want to trade: morning, noon, evening, over breakfast or bedtime.
No one can make market price
Forex exchange market is too large and has too many participants that no person (including the central bank) can control the rate of the market in a long time.
Leverage finance major
In Forex trading, with a small deposit you can make a large value contracts. Leverage gives the ability to create attractive profit, and keep risk capital to a minimum.
For example, a floor broker forex provides a leverage ratio of 50: 1, which means the escrow deposit of $ 50, you can buy or sell 25 deals worth $ 00 of cash. Likewise, the $ 500 deposit you can send transactions to $ 25,000. But leverage such benefits, but you should pay attention, leverage is a two-edged knife. Without proper risk management, high leverage can lead to large losses.
Liquidity terms high
Because the forex market is too big, so stick clause is very high. This means that in the normal state of the market, with one click you can instantly buy or sell price you want to be a person in the market will be ready to receive your transaction. You will never get stuck in a transaction. Even you can for trading software transaction automatically ends when you reach the desired profit level (a take profit order) or when transactions are at a loss (a stop loss order)
Easy to participate
Many people think that to start currency trading you have to spend a lot of money. In fact, when compared with the stock is not the case. Forex floor provides financial account transactions and micro mini, a few floors to allow you to open the account with the smallest amount accounts only 25$
We're not saying you should open an account with a minimum, but it makes forex trading becomes more accessible to individual investors but who do not have large initial capital.
Many free support
Most Forex brokers floors usually provide account transaction virtual to test and practice your skills, in addition to tourist information and services forex chart analysis. And all completely free.
Account virtualization is really very useful resource for those who wish to practice skills "trade money" before opening an account real risk real money.
Now that you know the advantages of the forex market, and we'll see forex market versus market securities like.
