Top 10 Benefits of Forex Trading

Why Choose Forex Trading Online?

In the past decade, forex trading has grown in popularity. The advancement of technology and an increase in mobile-accessible platforms have made it easier than ever before to trade currencies.

And forex traders are in the business of trading currencies. It is a difficult process that requires patience and a lot of strategy. Today, there will be even more opportunities for traders as they'll be able to use high-frequency trading strategies, advanced algorithms, and artificial intelligence to optimise their trades further.

The best forex traders will use all available resources to be successful, including time-tested trading strategies, real-time information on markets, as well as new developments from other successful forex investors.

Why Trade Forex: Advantages Of Forex Trading

• 1. 24-Hour Market

The forex market is worldwide, so trading is pretty much continuous as long as there's a market open somewhere in the world. Trading hours start in the U.S. when the first major market opens, in Sydney, Australia, at 5 p.m. Eastern time on Sunday. Trading ends for the week when the last major market, in New York, closes on Friday at 5 p.m

• 2. Largest and Global Financial Market

The foreign exchange (forex) market is the largest financial market in the world, and it's not going to cede that title anytime soon. It's not hard to see why the forex market is used as a snapshot of global trade and economic activity. On average, between $4 and 5 trillion (yes, that's trillion with a T) is traded daily. That's about $200 billion an hour, $3 billion a minute, $50 million a second. And with traders of all sorts participating from all over the world, it truly is the single most accessible and global trading market.

• 3.Leverage

Foreign exchange brokers allow retail traders to borrow against a small amount of capital, thereby offering a chance to open a high position. The amount of money you raise from leverage is generally represented as a ratio. For example, 1:100 would mean that your leverage is 100 times what you actually invested in the market.

• 4. High liquidity

Due to the large volume of trading activity that occurs round the clock in the forex market, it is considered the most liquid market in the world. Liquidity refers to the ability of assets to be bought and sold with little effect on their value. In the case of forex markets, liquidity allows you to trade with minimal risk.

• 5. Nobody controls the market

There is a large number of participants in the forex market, which is why no single player, but only external factors such as the economy can control prices. This factor reflects the importance of foreign exchange as an investment option on traders’ portfolios. No middlemen exist in this market, and brokers only help connect buyers and sellers.

• 6. Low fees

The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions.For larger transactions, the spread could be as low as 0.07%. Of course, this depends on your leverage, and all that will be explained later.No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail forex brokers are compensated for their services through something called the “spread“.

• 7. Ability to go long or go short

The ultimate goal of any form of trading is to buy low and sell high, turning a profit on your initial investment. One of the benefits of forex trading is that you have the option to either buy or sell currency pairs depending on the state of the market.

In forex trading terms, this is known as going long or short.

If your instinct tells you a currency pair is likely to increase in value, you would go long; for example, you would buy the pair based on a prediction of the base currency rising against the quote currency.

You would go short if your predictions went the other way; for example, you would sell the pair if you thought the base currency was likely to fall in value against the quote currency.

• 8. Start with as little as $100

You don't need a large amount of money to start trading forex. With the forex market being the most accessible financial market in the world, starting your trading journey for as little as $100 is definitely an option. When you do start trading you need to consider what you hope to achieve out of it and consider the level of your risk you’re going to take.

A lot of people treat trading as a way to complement their existing income. In fact, most traders start off by trading in their spare time as a way to earn extra money on top of their day job. Trading in this way lets you fit trading into your lifestyle, rather than making it the center of your world.

• 9. Bonus Benefit

Forex bonus is a free, first deposit that you’re given by your forex broker, allowing you to start trading without risking your own capital. They’re most commonly reserved for new traders and come with a string of terms and conditions around how you can trade it and when you can withdraw your profits.

• 10. Suitability to Every Trader

First-time traders looking to make small investments can easily enter the forex market. One of the many advantages of foreign exchange is that brokers offer a provision of demo accounts. Using these, rookie traders can test their skills in a market simulation before committing to any deals.

Below we have listed the minimum criteria that we expect to see in a best forex broker:

✔️ Regulated by the FCA

✔️ Low commissions

✔️ Multiple Deposit and Withdrawal Methods

✔️ Tight Spreads

✔️ Heaps of Supported Forex Pairs

✔️ User-Friendly Trading Platform

✔️ Good Selection of Techincal Indicators

✔️ Top-Notch Customer Support

Best Forex Broker Sites in the world