Forex trading is becoming popular as an investment option. In fact, a growing number of people are taking their investments in stock trading and transferring it to Forex.
This exodus is not without merit. Forex trading is a booming investment market and the smart money is to invest and trade in currencies. There are very compelling reasons why you should get into this business, here are five of them:
Trading happens 24 hours a day
One of the things that attract people to Forex trading is the fact that trading happens 24 hours a day. This means the opportunity to earn happens anytime you want to. This is a major benefit for those who want to take advantage of movements that happen in the currency market all throughout the day or have very busy schedules that prevent them from trading during their work hours.
The largest market
Currencies trading is the largest financial market in the world. About USD$4 trillion changes hands every single day. The market is so huge that it dwarfs all of the world's stock markets combined. The sheer size of the Forex market means it is virtually impossible to manipulate. Additionally, your account size will never outgrow the market.
The Forex market trends
One of the qualities of the Forex market is that its movement trends. So if a currency increases or decreases in value that movement would go on for some time. This means the opportunity to take advantage of this movement and profit from it is quite high. Contrast this with non-trending markets where movements are so hard to predict.
The Forex market does not have bullish or bearish trends
Because you trade in currency pairs, when you buy a currency, you're also selling another currency. This means you have an equal opportunity to profit from both actions. Another great benefit is that there is small number of currencies that you can invest in, not like stocks, options and futures, which are so many and hard to keep track of.
You don't have to worry about commissions
When you trade in currencies, you won't have to worry about commissions, exchange fees or any other hidden charges. The market is quite transparent and brokers only take a small percentage of the spread. There are no complicated calculations for commissions involved. This applies even when you trade on your own and use an online trading platform. Only a small fee is taken from your spread.
Mario Singh is a well-known expert on the Forex market. He operates Askmariosingh.com where he shares his expertise on currency trading and helps beginners learn forex trading.