Today, it appears that forex trading provides better returns than stock market investments home page. This is because so many advertisements tell you to purchase courses, download software, or open a forex trading account. Are forex trading as lucrative as they sound? Take a look at these benefits of forex trading to help you make a decision.
1. There are no commissions and charges
Trading forex involves no fees or commissions. Brokers are paid by the spread (the price difference between an offer and a bid). All you need to do as a forex investor is ensure the spread movement can be offset.
2. No Minimum Lot Size
Some markets, like the commodity market, have a lot size that is required. When trading spot Forex, you can choose the size of your lots. Some forex traders offer fractional and smaller lots.
3. Trade 24 Hours A Day, Five Days A Week
Since we all work from 9-5, it’s not possible to watch the market while at work. Since the forex markets are open 24 hours, we can trade during nighttime or after our jobs.
4. High Leverage
Start an account with as little as $50. Starting an account is possible with just $50. Brokers give leverage up to 100 times margin deposit. It means you could make $10,000 by only investing $100. Profit from small price fluctuations by carefully managing your trades.
5. Massive High Liquidity Markets
Each day, trillions in forex are traded. On these markets, no single entity can control the price movements. Money is so easily traded that trading in a certain market and exiting it will not be difficult.
6. Eager Brokers
Brokers are always fighting for your business. Brokers will try to convince their clients to join by offering them many goods and services. Demo accounts can be used to help you test your trading strategies before investing real cash. Charts and the most recent forex news are available for free.
7. No startup costs
Forex trading is not difficult to learn. No dedicated computer is required. You can buy trade robots for between $100 and $200. These robots act on signals to buy and/or sell.
You will find that the forex market has become more attractive. Trading futures may require that you open an account with $5000, or more. Their high volatility may be too much for some people.
Trading forex offers a happy middle ground that we all could enjoy.