Forex market is the largest and most liquid market in the world. Lots of big corporations are taking part – banks, currency speculators, government, and financial institutions. Along with big fish, there are traders like you and I, who slowly but surely take part in the $3 trillion daily turnover.
What is so attractive about forex anyway? What made you enter the market arena?
1. Trade Any Time, Any Day!
In the beginning, several years ago, before turning forex to a full-time career, I traded part-time. The greatest thing about this investment is that you can turn it to fit your needs. The fact that forex market is up and running for 24 hours, it is continuous and volatile, makes it possible to enter trades when It best suits you and still make generous chunks of money without the need to search the market for opportunities 24/7.
2. Control Large Sums of Money
A very important feature in trading is leverage. All forex brokers allow traders to use leverage, which is basically a loan that allows you to trade much more money than you actually have in the trading account. For example, if the leverage is 100: 1, you can trade $100 for every $1 in your account. This also means, you can trade $100,000 having just $1,000 of your own capital.
3. Even Small Movements Means Profit
Forex is all about liquidity. Large sums of money are getting in and out of the market even with minimal price movements. Besides, you can choose the direction of your trading decisions. If you believe that the currency pair is going up – buy it! If you think that the currency pair is likely to fall in price, sell it!
4. Relatively Low Fees
We all know that brokers get their commissions via spreads. So since there is no transaction fee, there are fewer expenses for an average trader. There might be some extra fees here and there, but it is generally quite low compared to other commodities and stock market fees.
5. Practice Makes Perfect
My favorite feature in online currency trading is the ability to practice. All forex brokers offer free demo accounts to all traders. On top of that, many have courses and webinars for free or for rather small fee. Mini accounts with very small minimum deposit requirements are also great for practicing. You can get the feel of the market without potentially devastating losses.
6. Money and Risk Management
In forex, like in any other kind of investment, there is a chance of loss. I wouldn’t even use the word “chance”, because loss is the required part of the game! The good thing is that you can control your money and risk with stop/loss to limit losses based on irrational decisions.
7. Trading Platforms and Tools
Today brokers constantly compete for reputation and customers. Every broker differ in one way or another – trading platforms are all different (whether in configuration, download or online, tools included, or user-friendly interface etc.), deposit requirements, features and available tools are unlike, services and support is definitely unique. This colorful variety allows you to find what suits you best.
Forex currency trading is AWESOME! The environment of forex trading makes it possible to make a living in the comfort of your own home, out in the coffee shop on the sunny day, in Thailand somewhere on a beautiful sandy beach with margarita in your hand (speaking of margarita, I need a refill!!!) Can you really pass the change to take a part?!!