Forex Trading Advantages



Why forex market is preferred?

No commissions

There are no clearing fees, exchange fees, government fees and brokerage fees. Services of brokers are usually paid through the “bid-ask spread”.  

No middlemen

In spot currency, the middleman is eliminated and lets you to trade directly with the market in control of the pricing on a specific currency pair. 

No fixed lot size

Either lot or contract sizes are both determined by the exchanges in the future markets. A silver future comprises of a standard-size contract of 5,000 ounces. You will determine your own lot, or position size in spot forex and it allows traders to invest as low as $25. 

Low transaction costs

Basically, the retail transaction cost is less than 0.1% under normal market conditions. Moreover, the spread can settle as low as 0.07% in larger dealers. Note that it will depend on your leverage. 

A 24-hour market

The forex market is open 24/5, from Monday morning in Australia to New York afternoon. It’s convenient for traders who are staying at work and wanted to trade on a part-time basis because they can trade at anytime they prefer.  

Leverage

A small deposit allows to control a larger total contract value in forex trading. Leverage provides the capability of a trader in generating healthy profits, and maintain the risk capital to a minimum level.

High Liquidity

With a massively huge size of the forex market, it is as well exceptionally liquid. It is as an advantage for many, as it suggests that in an under normal market conditions, with just a single click you’ll be able to instantly buy or sell at will because there will always be someone in the market that is willing to run for the other side of your trade. You’ll never get stuck in trading. In fact, you can also set your online trading platform to close your position automatically once you’ve reached your desired profit level, or close a trade if its going mistakenly.      

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