Why Trade Forex?

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The most obvious answer to this question, is you trade forex in order to make money.  We will explore many reasons and ways in which Forex Trading can make you wealthier. There are many real advantages to Forex Trading.

Of all of the world financial markets, Forex is the most liquid and the largest.  Over $4 trillion USD a day is traded on the Forex market. The large numbers of buyers and sellers at any given time in the Forex market tells us that it is extremely liquid and that can lead to lots of opportunity for profit. The liquidity of this market means that there will always be someone willing to trade with you.  You can conduct trades instantly because there is always a market open and other traders available. 

The market size is also an advantage in terms of no one entity being able to dominate it.  The forex market is so tremendous that no one brokerage, bank or even country can control the entire thing.  This means that there is more opportunity for success when you are just one person or part of a small operation. 

The Forex market has the most operational hours.  Because the market spans the entire world, it is a 24 hour a day operation.  You can choose to trade in the hours that work best for you. No other investment opportunity can offer you this benefit.  There are so many available methods of trading, most of them are accessible online at any hour of the day or night with brokerages in any country in the world.   

The Forex market gives you the option of spot trading which is an agreed upon price.  That takes some of the gamble or guess work out of the trading experience and can really be beneficial to inexperienced traders. 

The fact that the market price of a currency changes significantly over time allows for large profit margins once you are a more experienced trader.  This volatility is considered a large advantage to Forex Trading.

The costs involved in trading Forex are relatively low.  There are many Forex trading arrangements with little or no broker fees, commissions or clearing fees.  The fees associated with Forex trading are called bid or ask spread.  These fees often amount to less than the traditional fees associated with other financial markets.  This also means that your forex broker or agent has a vested interest in the success of your trade in a much more real way than other markets.

There are very low minimums required for Forex trading.  Although it might not be advisable to trade with as little as $25 or $50, it is possible.  Many other markets have much higher minimums and can be harder to enter for that reason. 

Forex is known as relatively easy to learn how to predict because of is basis in mathematical probabilities and patterns. There is so much instruction and mentoring available and  brokerages offer trial accounts and other learning opportunities that Forex trading is a very attractive option for people looking to get started in a new opportunity.

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