Regarding the volume of trading, Forex is the largest market in the world, and this couldn’t happen if there weren’t some important benefits and advantages of this market. So many people choose to trade Forex by the following reasons:
1.Liquidity: Daily activity of Forex can exceed 4 trillion USD per day, making the market the most liquid of the financial markets. So, in normal market conditions, you can anytime buy and sell because there will always be someone willing to trade with you. Furthermore, you can set your online platform to close your position by the moment you reached the profit target.
2.Low transaction costs: The cost of a retail transaction (the spread or the difference between the bid and the ask price) is usually less than 0,1% in normal conditions. At larger dealers, depending on leverage, the costs could lower until 0,07%.
3.No middlemen: You are allowed to trade directly with the market, without middlemen. All trading orders are sent directly to the liquidity owners, so the intermediaries are eliminated and the execution time is minimized.
4.No fixed lot size: Compared to futures markets, where lot or contract sizes are fixed by the exchanges, on Forex you are allowed to determine your lot and your position size. Therefore, you can even participate with an account of 25 USD.
5.Market hours: Forex trading operates 24 hours a day, five days a week. The best liquidity is when operational hours in many time zones overlap. So you could do little researches on this subject to find out the most suitable hours to trade.
6.Leverage: In Forex trading, owning a small deposit allows you to control a much larger contract value. Leverage gives you the opportunity to gain great profits while you keep the risk capital to a minimum. On the other hand, it is possible to lose money and significantly lower your account very quickly.
There are also loyalty programs, bonuses and extras that will show you a whole new world of trading, where technology has no limits and where you can find the best opportunities.