Why you should trade forex?
This is a very luxurious investment opportunity with a very low minimum investment requirement. You can make money when a currency pair is going up as well as when it is going down.
There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market:
No commissions.
No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.
No middlemen. Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
A 24-hour market.
There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps.
This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
No one can corner the market.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.
Leverage.
In Forex trading, a small margin 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.
For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies.
Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. Our broker eToro gives you up to 400* leverage.
High Liquidity.
Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will.
You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).
Free “Demo” Accounts, News, Charts, and Analysis. Our broker offers 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free!
These are very valuable resources for “poor” and SMART traders who would like to improve their trading skills with 'play' money before opening a live trading account and risking real money.