More and more people are now seeking new ways to earn money aside from working hours daily for wages. There are those who have some money set aside, but they want a faster and probably more reliable way to let that money grow. More and more people are now trying forex trading.
Foreign exchange trading involves the exchange of different currencies from around the world in a market that never closes. Traders and investors in this market enjoy various benefits and advantages that they wouldn’t have experience if they just chose to lock in their money in some bank.
In this article we’re going to talk about the benefits of investing in forex market. If you’re searching for an effective way to grow your money, and if you’re serious about investing, this article is for you!
When you’re into forex trading, you won’t have to bother with commissions, clearing fees, government fees, brokerage fees, and many other pesky charges and expenses. Most retail brokers earn their keep for their services through a thing called the bid-ask spread.
When you’re doing some serious currency trading, you no longer need any kind of middlemen. You can trade directly with the market responsible for the pricing on a particular currency pair.
No fixed lot size
In the futures market, lot or contract sizes are determined the exchanges. For instance, a standard lot size contract for silver futures is 5,000 ounces.
But if you’re trading in the spot forex market, you determine your own lot or position size. This is very good if you want to be able to participate with accounts as small as $25.
Low Transaction Cost
The retail transaction cost, or, as mentioned, the bid-ask spread, is normally less than 0.1 percent under normal market conditions. For bigger transactions, the spread could get as low as 0.07 percent. However, this might depend on the amount of leverage you are using.
Open 24 hours
There is no waiting for the opening bell. You can trade from Monday morning opening in Australia to the afternoon close in New York for days on end, if you have a little difficulty sleeping.
No one can manipulate the market
The foreign exchange market is just so big. It has a lot of participants that not a single entity, not even a central bank, can control or manipulate or corner the market price of currencies for an extended period of time.
Use of Leverage
When you’re trading in the forex market, a small deposit can control a much larger total contract value. Leverage provides the trader the ability to make huge profits and at the same time keep risk capital to a minimum.
But even if using huge leverage sounds like a very tempting idea, you shouldn’t be fooled. Remember that leverage is a double edged sword. If you don’t use proper risk management, a huge leverage can also spell huge trouble, meaning huge losses, for you and your trading career.