You are probably wondering why should you consider investing your time and energy in forex? There are many benefits in this market and Prof FX has chosen top 10 reasons why so many people go for it:
1. No hidden fees or commissions
Aren't you exhausted of all these "pay upfront" deals? Almost everywhere you have to pay to join, pay to be trained, pay to make a transaction. There is no commission fee, exchange fee or trading fee. What about the broker? Your broker makes their money by taking the difference in price between the ask price and bid price for the currency being traded. In short, you won't be asked a penny for any forex services.
2. No middlemen
Forex doesn't have and doesn't need middlemen, unlike for example equity exchanges. This gives you opportunity to access market maker directly. In simple words, you buy or sell directly from the entity that has put a price on a certain currency pair and, therefore, gain a quick access to trades.
3. A 24-hour market
You won't have to set an alarm to wake up early in the morning or drink 10 cups of black coffee to stay awake at night. Forex market is as flexible as it gets and welcomes traders from all over the world at any time of the day! You choose the trading hours – morning, noon or night!
4. Much less complicated then stocks
There are tones of stocks available for trading and it is difficult to keep up with the updates, read up the news and perform the analysis before each new trade.
Unlike stocks, Forex market is much less demanding. You have access to many different currencies, but generally Forex focuses on the four major currency pairs. That means less time wasting on research and much faster entrance to the market itself.
Not long ago only the owners of million dollars account could participate in currency exchange. Today due to expended international growth forex became available to anyone from the comfort of your own home.
Every individual including you have the same leverage guarantees that were available only to international banks back then. What does it mean? In simple words, a small margin deposit can control a much larger total contract value.
Leverage provides each trader with a chance to profit with a minimum capital risk. For example, let's say that your broker offers 200 to 1 leverage, meaning a $20 dollar margin deposit enables you to buy or sell $20,000 worth of currencies. What about bigger deposits? In a similar fashion, $200 dollars can be used to hold $200,000 worth of another currency
6. High Liquidity
The daily turnover in Forex Market reaches 2 trillion dollars. Let me picture this for you: 2,000,000,000,000!! Forex is an enormous market and it never stays still. Almost every country in the world has institutional and individual traders who are active and have a personal interest in this largest of commodities. That's where the liquidity comes from. Buying and selling is done by a simple click of a mouse.
7. Practice makes perfect
Almost all online Forex brokers offer demo account, easily to download and install, to practice your skills. You won't have to deposit anything. The demo account works exactly like the real account with all capabilities and information.
For example, with your free demo account you have an access to breaking forex news and charting services, buy and sell capabilities and realistic "play" money account with active profit and loss. This is a perfect way to master your trading skills and tactics with virtual money before becoming a real thing and opening a live trading account.
8. Free software
Forex software offered by the brokers is specifically designed for the average home computer. The software provides the trader with real-time charting, lots of indicators, live price feed and ability to sell and buy currency pairs immediately online. There is also an option to upgrade the software program for an additional cost to get an access to advanced features, but it is more then unnecessary for a beginner. Start small, think big!
9. Small deposits are allowed
Don't blame yourself for not marrying a milliner's daughter or a Saudi Arabian prince yet. You don't need tons of money to start as a currency trader.
Unlike trading stocks, online forex brokers have "mini" and "micro" account options with a minimum account deposit of 250$ and lower, which makes Forex accessible to almost anyone! You might wonder what can possibly come out of $250. With proper training and patience within several months a minimal investment can turn into a $25,000 account.
10. Limit your risk with Forex
Forex platforms are designed to automatically assign a margin call if the margin amount required by your account exceeds the actual capital available in your account. In simple words, the most you can possibly lose is the money you have got in your account and no penny more. You cannot get into minus and trade amount not available in your account.
Over all, Foreign Currency Exchange markets have become a profitable hobby and satisfying lifestyle for many individual investors. Forex is fun, user-friendly and lucrative market available to anyone of us.