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Why should you trade Forex

Why should you trade Forex?…. well for a few good reasons that you just might need to know,

There many reasons why you should be trading in the Forex market. Here are a few guaranteed to make you convert to the  Forex side:

No middle men

The spot market allows you to directly trade the market, the one responsible for the price of specific currency pairs. This eliminates the middlemen like in some financial markets giving you more control over your trades

No commissions

No exchange fees, government fees, clearing fees, brokerage fees are paid in this market meaning the largest piece possible, if not the whole, of the imaginary pie goes to you. The retail Forex brokers are compensated by the bid/ask spread which is the difference between what you bid and the offer price for the said currency.

No fixed lot sizes

Where as in other financial markets such as the futures market lot or contract sizes are determined by the exchanges themselves. An example is the standard lot/ contract in the silver futures market is 5,ooo ounces. Where as in Forex there is no fixed lot sizes and you determine  your lot or position sizes. This means even small amounts like $25 can participate in the Forex market as one feels like though such a small amount isn’t recommended (we will explain this later)

Low transaction costs

The bid/ask spread is usually as low as  0.1% percent or lower  from the retail Forex brokers compared to the 3% to 30% for other financial markets.  Some of the large retail brokers have even lower spreads of 0.07%. this also depends on something known as leverage but will talk about that later.

Its a 24 hour market

This means no waiting for the ceremony of the opening bell, no restriction to the time of your country. From the Monday opening in Australia to the afternoon closing time in New York the Forex market never sleeps. This means whether you want to trade at noon, morning, afternoon, midnight, way past your bedtime or even as you sleep you can be trading. This makes it way too convenient for people who want to trade on a part time basis.

No one can corner the market

The Forex market is way too huge for any single entity to corner the market not even a large central bank or even the largest banks can. It has so many participants that not a single person can control the price for an extended period of time. This means less chance of being screwed.

leverage

A 50 to1 leverage means $50 dollars can control $2,500 meaning a better chance of making sweeter profits

Others are high liquidity since its soooo large its extremely liquid.

We go now to WHO TRADES FOREX…

 

 

 

 

 

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