Forex Over Other Investments

Forex trading has become extremely popular among the investors in the recent years. There are some for choosing Forex trading over other investment opportunities.

- Unlimited Earning Potential

About $4 trillion in different currencies are traded in the Forex market every day. This has made the Forex market the biggest and the most liquid financial market in the world. Because of the transaction volume it is challenging to manipulate the market and your earning potential is unlimited. As such investing in Forex is one of the most stable financial businesses.

- Forex Market Never Sleeps

Forex trading can be done any time of the day or night as the Forex market is round the clock market place. This is because the banks are always open to customers in the varying time zones all over the world. This is desirable for many people who are looking for an opportunity to do during their spare time since most of them have their day jobs and they only can do their Forex trading on part time basis from their home during the evening.

- Transparency

The Forex market is highly transparent where anyone can search for Forex information such as real time news and analysis online. With this real time information a Forex trader can do their own analysis such as risk management strategy to avoid unexpected surprises.

- Low Initial Investment

A trader can participate in Forex market with a small account size. This is very good for new investors as some may want to test market with a small amount of capital.

- No commission and exchange fees

No commission or transaction fee incurs in Forex trading. Most brokers offer commission free trading. The only cost a Forex trader has to pay in taking on a position is spread. The spread is the difference between the bid price and the ask price.

- Leverage

If you invest in stocks market the amount of stock you can trade is limited by how much the capital fund you have. This is not the case in Forex trading. In Forex trading, traders are permitted to trade foreign currencies on a highly leveraged basis – up to 100 times their investment. An average Forex trader with a small trading account will be profit sufficiently from the movement of the currency exchange rate.

- Profit in both rising and falling markets

In Forex trading, traders can profit from both rising and falling markets. As Forex trading involves selling one currency and buying another currency when you purchase a currency, you are selling the other currency in that particular pair at the same moment. As the market moves, one of the currencies will increase in value versus the other- there is an equal opportunity for profit whether a market is rising or falling.