Forex Markets is a very big market with many players like brokers, banks, financial institutions, investors, and traders trading the currency pairs 24 Hours a day. With the arrival of high-speed computers and high-speed internet facilities, Forex Trading is becoming more and more popular. Following are some of the main benefits of Forex Trading as compared to a typical 09 to 05 job or trading in any other security.
Forex is considered to be one of the most liquid financial markets. This means if you invest in any currency pair it can be easily converted to ready cash without much hassle. Buying or Selling the Forex Market is very easy due to the large volume of trading. If you want ready cash due to any issue, you are not stuck in a trade for hours or days. It only takes a couple of minutes to buy or sell any currency pair.
Unlike other markets, it is very easy to open an account with a broker for online Forex Trading around the world. Once your account is opened you can start trading from your mobile phone or computer from anywhere in the world through the internet. The initial investment required for account opening is not very high usually some brokers allow account opening with only $ 100 and most of the brokers open account with $ 200 which makes it very easy for people to invest in the Forex Trading world.
If used in the right way leverage can help to post-high gains. Leverage means you can use a small amount of money to buy or sell a large amount of currency pair on leverage. A trader borrows money from the broker to take a high position in a trade. For Retail Forex Traders, 1:30 (1 to ratio 30) and 1:50 (1 to ratio 50) leverage is offered by most brokers which means for every 1 USD you can trade equivalent to 50 USD. Leverage should be used with a lot of carefulness as the losses can be incurred with the same ratio of 1:50.
Unlike any other financial market like stocks or commodities, Forex is relatively new where trading is done through computers and the internet. All the transactions take place electronically and there are servers through which the data is transmitted which makes Forex Market very transparent. Due to high liquidity, there is no monopoly by the big investors or big financial on the Forex Market. Forex regulatory bodies require all Forex brokers to register and be licensed and all Forex brokers have to comply with the standards set by the Forex regularity bodies.
As the Forex Exchange is open 5 days a week 24 hours it is very easy for anyone to trade any time anywhere around the world. This unique feature of the Forex Market makes it different from other financial markets. You can trade as per your schedule and your comfort any time in the day or night. You can be a day trader, swing trader, or long-time investor in Forex. You can trade on a 5-minute chart, hourly chart, daily or weekly it is up to you. You can trade part-time Forex trader, you can be a full-time Forex Trader. By mastering the art of Forex Trading you can leave your job and give more time to your family or yourself.