Well, if you are an expert in investing, diversifying your funds or investment is definitely something that you would do right?
Maybe you already have your hands filled with stocks and properties. Why not add forex as well?
There are many reasons why you should trade forex and here are some:
- No commissions
In Forex, there are no clearing fees, no exchange fees, no government fees, no brokerage fees. Forex brokers will make their money through the bid ask spread. The spread will vary depending on the currency pair that you are trading.
- No middlemen
There is no middlemen involve in forex trading. So, individual traders are allowed to trade directly with the market responsible for the pricing on a particular currency pair.
- No fixed lot size
You can decide on the amount that you want to start with in forex trading. In most cases, forex brokers allow you to start with just $25 as your minimum initial deposit.
- Low transaction costs
The retail transaction cost (the bid/ask spread) is usually less than 0.1% under the normal market conditions. You can get lower spread as low as 0.07% with larger dealers.
- A 24-hour market
Forex is a 24 hour market. You can trade from the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those who want to trade on a part-time basis. You can trade according to your own time.
- No one can corner the market
The foreign exchange market is so huge and this means there is no single entity that can mopolize the market. This levels the playing feel.
- Leverage
In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. This is by far the best benefit that I can enjoy in Forex.
Above are just some of the main benefits that you can get by trading Forex. There some more benefits but I am just lazy to write all of them here..
By now, you should have a good idea on how powerful the Forex market can be and the benefits that you can take advantage of if you choose to invest in Forex.
Go ahead and do some more reading on internet. I am sure you will be able to find more useful information that can open your eyes to Forex trading.
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