forex

Trading the Forex market has become very popular over the last 5 years. Why is it that traders around the world see the Forex market as a rags to riches chance? We will try to answer this question in this article. We will also point out some differences in the Forex markets, the stocks market and the futures market.
Some of the benefits of trading the Forex market are:

Superior liquidity.
Loads of money going around is what makes the Forex market different. The Forex market is by far the most liquid banking market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Allowing traders to open and close transactions with ease. Also such a great volume makes it hard to manipulate the market in an extended manner.

24hr Market.
This one is also one of the great advantage of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, letting active online traders to pick what time to trade.

Low minimum investment.
The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as Ł200, depending on leverage offered by the broker. This is a great advantage since Online Forex traders are able to keep their risk investment to the lowest level.

Leverage trading.
If you are trading the online Forex market if gives you great buying power. Some Forex brokers offer leverage up to 400:1, allowing traders to have only 0.25% in margin of the total investment. For instance, a trader using 100:1 means that to have an US$100,000 position, only US$1,000 are needed on margin to be able to open that position.

Low Transaction costs.
Commission free trading. The only cost traders incur in any transaction is the spread (difference of the buy sell price). This spread could be as low as 1 pip (the minimum increment in any currency pair) in some pairs.

Qualified trading.
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Letting us watch, and at the end get to know each instrument better.
Trading from anywhere.
If you are a jet-setter, you can trade from anywhere in the world just having an internet connection.