10 reasons to start trading FOREX market!
A growing number of well-informed entrepreneurs and investors are diversifying their traditional investment portfolios such as bonds, stocks and commodities using foreign currency for these reasons
1.) FOREX is the largest international financial market.
With a daily trade volume of more than $1.5 trillion The spot FOREX market is able to absorb trade volumes that exceed the capabilities for any other exchange. In fact, when you compare it to the daily market of $50 billion for equity and the 30 billion daily futures market, it is evident that this market offers you, as well as thousands of FOREX traders, an almost limitless trading capacity and the ability to be flexible.
2.) FOREX is a True Market that is open 24 hours a day.
It is said that the FOREX Market never sleeps. Trade positions are able to be traded and exited anytime anywhere in the world, around all hours, 5.5 days a week. There is no need to wait for the opening bell to ring similar to trading stocks.
It’s a 24 day, continuously operating electronically (ONLINE) trading platform that never shuts. This is a great option to those looking the ability to exchange on a limited basis. This is because you have the option of choosing when you wish to trade in the morning, midday or at night.
3.) There is no Bear Market in FOREX.
There is access to an incredibly smooth exchange between currencies. Currency exchanges are conducted through “pairs” (for instance, US dollar vs. JPY (YEN) or US dollar against. CHF (Swiss franc) and the opposite side of each currency pair (for instance USD/CHF) changes constantly relative with the opposite.
Therefore, when you buy the currency you want to purchase in exchange for another currency, you are simultaneously selling the currency of the other in the particular pair. When the market fluctuates and the currency will appreciate in value against the other. Of course, it’s your decision to pick the right currency for you to use. ( you purchased) and shorter( that you traded).
4.) High Leverage Up to 400:1 Leverage.
You can trade foreign currencies on a leveraged basis, as high as 400x the amount you invest with brokers.
Standard 100,000US$ – USdollars currencies can be purchased using just 0.25 percent margin or $250.
Mini FX accounts can be used to trade with only 0.25 percent margin. That’s right only $25 is enough to manage a 10,000 unit currency position.
For futures trader who have become accustomed to margin requirements typically equal 5 – 7 % – 8% of contract’s value, will be aware how the FOREX market offers much more leverage. And for those who trade stocks, who have to provide at the minimum of 50 percent margin, there’s no comparable. If you’re seeking a more efficient way to make money trading with in the Forex Market.
5) Price movements could be highly predictable.
The prices of currencies on the FX market tend to repeat in predictable cycles and create patterns. The significant patterns that currencies in the foreign market create can be a major advantage for traders that employ “technical” techniques and strategies.
Contrary to stocks, currencies have the potential to create significant patterns. The majority of trading volume is speculative and as a result markets often overshoots, and then corrects itself. Being a trained trader, you are able to detect new trends and breakouts to be able to take positions and then exit them.
6) You don’t have to pay commissions or fees for trade FOREX
If you make a trade FOREX via Fenix Capital Management LLC (FCM) you are able to do so completely FREE of fees and commissions regardless of the size of your account.
Requires a minimal amount to start a brokerage account. It’s it’s just US$ 200 . They don’t charge commissions, or fees for trading or maintain your account regardless of account balance or volume of trading.
7) You don’t need to pay any trading or exchange costs.
There is no typical fees that traders in equity and futures are used to paying:
There are no exchange or clearing costs,
There are no NFA or SEC charges.
Since currencies are traded over the counter (OTC) through an international electronic network in FOREX the information appears on the trading screen is what you will receive that allows you to take rapid decisions regarding your trades, without having to be concerned about fees that can impact your profits or losses, or slippage.
In the commodity and equity markets, you are required to pay a commission as well as exchange charges. The over-the counter structure of the FX market is free of clearing and exchange charges and, in turn, reduces transaction costs.
8.) How do Forex brokers earn money when they do not charge commissions?
As with all financial products that are traded the trading of currency over-the counter involves an exchange spread between bid and ask, which is the price at which your counterpart prepared to make trades. The broker receives the bid/ask spread.
Since the market for currency offers continuous liquidity, traders can benefit from the most competitive and competitive spreads in the daytime and at night. Stock traders are more susceptible to risk of liquidity and usually receive higher spreads on trading, particularly during the hours after business hours.
9.) Market Transparency.
Market transparency is sought-after in all trading environments. The more transparent the market and efficiency, it is more effective the marketplace will become. In contrast to other markets where transparency is a problem (like in the numerous recently exposed scandals), FOREX markets are extremely transparent (i.e. the ability to analyze nations, and having access to live news and research is much easier than studying companies).
As a result of this transparency being an FX trader, you’ll be able apply risk management strategies that are in line to your technical and fundamental indicators.
10.) Quick Order Execution
The FX market provides the most complete level of transparency among all financial markets. Due to this, order execution and fill confirmation typically take only a couple of seconds.
In Forex the execution of orders is completely electronic. Since you’ll be trading on an online platform, immediate execution is regular.
No exchanges are available, there are no traditional open-outcry pits and floor brokers, and , consequently there are no delays. ( to be continued )