If you are interested in getting involved in the world of trading, you may have heard of forex (fx) trading. This exciting form of trade involves speculating on the price movements of international currencies, exchanging one currency for another to profit from the trade.
One of the best ways to get into this kind of trading is to engage the services of an experienced FX trading broker who can help you learn the ins and outs, and build your confidence as you grow in expertise. Forex trading offers many advantages over other forms of trade, let’s examine some of them:
- No Fixed Lot Sizes – Futures market trades require lot sizes that the exchanges determine. An example of this is silver, which requires a futures lot size of 5,000 ounces. When trading forex you have the choice of smaller lot sizes, enabling you to be more flexible and open trades made up of as few as 1,000 units.
- Low-Cost Transactions – The retail transaction cost of a forex trade under normal market conditions is usually less than 0.1%. The spread can go as low as 0.07%. for larger transactions.
- Commission Fee Free – One of the great things about trading forex is the lack of commission fees. There are no brokerage fees, no exchange fees, no government fees, and no clearing fees. Retail forex brokers receive compensation for their services from the “spread” system.
- Low Entry Barriers – When you start trading options, sticks, and futures, a significant investment is required, but that is not the case with forex currency trading! You can start with a mini or micro account that your online broker will offer you that only costs a minimum account deposit of $50, making it a much more accessible platform for those who don’t possess a large amount of start-up trading capital.
- 24-Hour Market -With forex trading, you never have to wait for the opening bell because there isn’t one! The forex market never sleeps, running 24/7 all year long! If you want to do your trades over your morning coffee or before you go to bed, it’s all up to your preference!
- Deep Liquidity – The forex market is huge which gives it a very deep liquidity. This affords you the advantage of being able to buy and sell instantaneously as you please, and never get stuck in a trade. You can close your position when the profit level you desire is reached with a “limit order”, or if a trade goes against you by using a “stop loss order”.
- No Cornered Markets – The FX market’s deep liquidity also prevents it from manipulation or control by a single entity during any major currency’s active trading hours. The foreign exchange market is gigantic, and has so many traders participating in it that even large central banks or billionaire traders can’t take control of the market price, at least not for very long!
The FX foreign exchange market is full of opportunities for any size investor to take part in with confidence. We hope to see you trading currencies with us soon!