There are multiple advantages to trading currencies. Forex trading is a 24-hour market, allowing you to trade both long and short positions without any restrictions, there are no clearing fees, no exchange fees, no government fees and no brokerage fees. Currency trading have low transactional costs and there is no fixed trading size.
7 Good reasons to trade Forex (“Currencies”, “FX”)
Currency trading, especially online Forex trading, has become extremely popular over the last 15 years as trading platforms have become available to more retail clients, not only institutions, giving everybody the opportunity to take advantage of the Forex trading benefits.
FOREX is a 24-hour market
Currencies are traded worldwide during various business hours in all time zones, thus making the Forex market a 24-hour 5-day-a-week market. There is something happening at any given time on the market, giving around-the-clock opportunity to trade.
Trade both long and short
Forex has no limitations on trading in both directions, unlike some markets where it can be difficult to sell short. There is, however, no bear market in Forex.
Forex has no fees, unlike the other markets. No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers earn their share with “bid/ask spread“.
With the advent of electronic trading platforms, there is no middleman involved, allowing you to trade directly with the market.
No fixed trading size
Forex allows you to size your trades as you wish, unlike the futures markets, where the sizes are standard contract sizes determined by the exchanges. On the futures market, the standard contract size for silver is 5,000 ounces. On the Forex (FX) market, you can set your own size, which is essential in managing your […]
Low transaction costs
The cost of a Forex trading lies in the spread, but since Forex is such a liquid markets with an unmatched liquidity, transactions costs, or the bid/ask spread, can be as low as 0.1%, or even 0.07% with the dealers.
Liquidity is fundamental in trading, it helps a trader get in and out of the markets with ease and with very low spreads. Forex is a $5.3 trillion-a-day market, with most of it concentrated on the major pairs, allowing traders to get in and out of their trades with great ease.