Forex trading is a trending topic. Many people who have never considered trading on the stock market are now evangelical in their support and belief in the Forex market. It’s the largest and most popular market in the world. For those keen to grow their money and interested in playing the markets, it’s a compelling prospect.
Are you considering dedicating a little money to Forex trading? Are you unsure about how and whether to get started? Here are six reasons why you should start looking into Forex trading today:
The Market is Accessible
Forex trading is one of the most accessible trading markets out there. You don’t need a big heap of cash, you can learn to trade online and you can sign up for your trading account online too. Many trainers and apps offer trading simulators meaning you can try your hand at the markets before committing any real money to them. And you can conduct your trades from wherever you have access to the internet.
The Market is Volatile
Whilst a volatile market sounds a little scary, it’s actually a world of opportunity for traders. Traders make their money through buying an asset they intend to sell at a later date. The more ups and downs the market experiences, the more opportunities there are for traders to acquire and dispose of assets. The Forex market is known to be extremely volatile meaning you don’t have to wait around to see your money grow.
The Market Offers Great Leverage
Those new to currency trading don’t realise the incredible leverage opportunities open to them. On the stock market, the maximum leverage offered by stock brokers is 1:2. In contrast, the maximum leverage some Forex brokers offer is 1:1000. High leverage like this allows a trader with smaller investments to trade high volumes of currency and make significant profits. Whilst this can also lead to significant losses, the opportunities are ready and waiting for careful and knowledgeable Forex traders.
The Market is Open 24 Hours A Day
The Forex market never sleeps. You don’t have to hang around for the opening bell. The international nature of the market means that it’s always time to trade somewhere in the world. This makes Forex trading particularly appealing to traders who work beyond the standard 9 to 5. They can trade part-time or whenever they can grab a spare minute. Whenever they’re ready, the Forex market will be ready too.
The Market Offers Low Trading Costs
As already mentioned, you don’t need a ton of money to get started with Forex trading. You can start with a very low initial investment, even as low as 100 USD. What’s more, most Forex accounts trade with little or no commission. There aren’t any exchange fees or data licenses. And there are plenty of trading software and analysis tools available for free to Forex traders.
The Market is Difficult to Manipulate
Because of the impressive size, speed and liquidity of the Forex market, it’s very difficult for one big organisation to manipulate it over any prolonged period of time. This democratises Forex trading in a way that you don’t get with traditional trading markets and allows individual traders a more level playing field on which to buy and sell their assets.
Forex trading isn’t for everyone. As with any form of asset trading, there are strategies to be devised and pitfalls to be avoided. But if you’re up for the challenge and ready to take advantage of the many opportunities offered by Forex trading, why not take the plunge today?
