Today, it seems that forex trading offers better returns than stocks fxcm markets. It’s easy to think that way because there are so many advertisements telling you to buy courses, download software or open a trading account. Are forex trades as profitable as they sound? Look at these forex benefits to make your decision.
1. No Commissions and No Charges
Trading forex does not involve any fees or commissions. Brokers get their revenue from the spread (the difference between the offer and the bid price). For a forex investor, all you have to do is make sure the spread can be offset by the movement of price.
2. No Minimum Lot Size
Some markets like the commodity futures marketplace require that you use a set lot size. When trading spot forex you have the option to select your desired lot size. Some forex brokers provide fractional or smaller lots.
3. Trade 24 Hours A Day, Five Days A Week
Because we all have jobs that are 9-5, it is impossible to watch the markets when working. As the forex market is 24 hours open, we are able to trade at night or after working.
4. High Leverage
Starting an account does not require much cash. With as little $50, you can start an account. Brokers provide leverage ranging from 100 up to 200 times margin deposits. It means you can make $10,000 by investing only $100. Manage your trades carefully and you can achieve large profits with small price movements.
5. Massive High Liquidity Markets
On the Forex markets, each day trillions are traded. Price movements on these markets can’t be controlled by any single entity. Money is trading so freely that entering a market and getting out won’t prove difficult.
6. Eager Brokers
Brokers fight for you business. You will be offered many services and goods to convince you to join their brokerage. There are free demo accounts available to help you practice before investing real money. The charts and the latest forex news can be accessed for free.
7. No Start-up costs
You don’t need much to start trading on the Forex markets. It is not necessary to have a dedicated computer. Trade robots are available for $100 to $200. They act upon buy and sell signals.
If you look at the forex markets, they are starting to appear attractive. Futures trading may require the opening of an account for $5000 or more and their high volatility and risk may not be something that can be tolerated.
Trading forex seems to offer a happy medium that we could all enjoy.