There are many benefits and advantages of forex trading. Here are a few reasons why so many people are choosing this market:
No commission (commission)
No payment fees, no exchange fees, no government fees, no brokerage fees. Most floor retail brokers make money through their services through difference deviation buy and sell (bid - ask spread).
No broker
Spot currency trading eliminates the middlemen and brokers allow you to trade directly with the market responsible for the valuation of individual currency pairs.
No fixed volume
In the futures market, trading volume or size of the contract (lot) from the floor decisions. Such a contract volume of silver futures is 5000 ounces standard transaction. In spot forex trading, you manually specify volume size or status. This allows the trader (trader) can participate with only 25 USD account (although download clause deals with only 25 USD in fact not a good idea).
Low transaction fees
Retail transaction fee (the difference between the buying price and the selling price - bid / ask spread) is essentially less than 0.1% compared to the normal conditions of the market. At the big exchanges, can spread as low as 0:07%. Of course, this depends on your leverage, and we'll explain later.
The market operates 24 hours a day
A special feature of this market is that you do not need to wait for the opening bell. From 2 am in Australia to open 6 pm close 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 trading 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.
Financial Leverage
In forex trading, with a small deposit you can make a high-value contract. Leverage gives the ability to create attractive profits at the same time 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 transaction 2500 USD worth of currency. Similarly, deposits $ 500 deposit you can trade up 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.
High liquidity
Because the forex market is too big, so very high liquidity. 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 for your transaction. You will never get stuck in a transaction. Even you can have the software automatically close the transaction status when you reach the desired profit level (limit order) or the end of a transaction if the transaction is at a loss (stop loss)
Easy to participate
Many people think that to start currency trading you have to spend a lot of money. In fact, when compared to the stock or future market or option, it's not so. The floor offering online forex trading mini account and microphone, a few floors to allow you to open an account with a minimum deposit of $ 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 floor forex brokers usually offer virtual account (demo account) to test transactions and build your skills, in addition to updated forex news and charting services. And all completely free.
Virtual account is actually very useful resource for those who wish to practice skills "trade money" before opening a real account with real money risk.
