• Mon. May 20th, 2024

Top 5 Advantages of Forex Trading

isometric-vaccination-composition-with-view-test-tubes-glass-vial-goggles-with-paper-formular-pencil-illustration_1284-63530

Featured Brokers

Liquidity

Min. Deposit: 100 USD

Regulated: NFA, CFTC

Broker Type: ECN, STP

AvaTrade

Min.Deposit: $100

Regulated: CySEC

Broker Type: ECN, STP

FBS

Min.Deposit: $1

Regulated: ASIC, IFSC

Broker Type: ECN, STP

JustMarkets

Min.Deposit: 1 USD

Regulated: FSA, CySEC

Broker Type: STP

Compared to other markets, the foreign exchange market has a number of advantages, which is exactly what we are going to discuss in this post. Indeed, Forex is the most dynamic market in the whole world. Trading is open 24 hours a day, seven days a week. Thus, transactions in real-time on the world’s leading trading venues distinguish the Forex market from all the others.

One of the most exciting things that I like about Forex is that the trader can be anyone regardless of income level, education or ethnicity.  Ok, now let’s stop beating around the bush and get down to distinguishing some advantages of Forex trading.

Forex Advantage No 1: Availability

Unlike other currency markets Forex market is available at any time of the day, round the clock, except Saturday and Sunday. For example, when the auction ends in Asia, they start in Europe, then in North and South American countries, and this cyclical process can bring or take a lot of money.

Forex Advantage No 2: High volatility

Forex is really unpredictable, and sometimes even in a few minutes, you can earn good money on the market. High volatility in currency pairs achieves this. Currencies are always fluctuating, and the variability (volatility) allows traders to make profits. However, people forget that the risk factor also increases in the pursuit of big money, so you have to be very careful in all your operations.

Advantage Forex No 3: High liquidity

The forex market has a 3 trillion daily global turnover. So high liquidity is when buying and selling are carried out during the whole day. Also, it is worth mentioning that Forex market is not subject to abrupt changes even in a crisis because people will always sell and buy money. Besides, in the case of depreciation of one currency, the rate of the other one in a pair goes up.

Advantage Forex No 4: Low-cost operations

In the Forex market, you do not need to pay commissions on transactions.

Advantage Forex No 5: The principle of marginality

The principle of marginality increases the chances of traders with a small amount of initial capital. It allows them to enter into high-cost currency transactions. For example, in case of a successful transaction, you can double the starting amount in a few seconds.

In this entry, I outlined the main advantages of the Forex market, and I assure you that you can be better informed about Forex if you keep on reading my upcoming posts.

On Key

Related Promotion