Forex Trading Online - 7 Reasons Why You Should!
Forex trading online is a fast way to use your investment capital to it's fullest. The Forex markets offer distinct advantages to the small and large traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional futures. Here are seven reasons why you'll want to look into Forex Trading online.
1 - Forex is the largest market.
Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.
2 - Forex never sleeps!
You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they're openall night! This makes Forex trading online a very attractivecomponent that fits easily into your day (or night!)
3 - No Bulls or Bears!
Because Forex trading online involves the buying of onecurrency while simultaneously selling another, you have anequal opportunity for profit no matter which direction thecurrency is headed. Another advantage is that there are onlyaround 14 pairs of currencies to trade, as opposed to manythousands of stocks, options and futures.
4 - Forex Trading online offers great leverage!
You can make the most of your investment resources withForex trading online. Some brokers offer 200:1 margin ratiosin your trading accounts. Mini-FX accounts, which cantypically be opened with only $200-300, offer 0.5% margin,meaning that $50 in trading capital can control a 10,000unit currency position. This is why people are flocking toForex trading online as a way to highly leverage theirinvestments.
5 - Forex prices are predictable.
Currency prices, though volatile, tend to create and followtrends, allowing the technically trained Forex trader tospot and take advantage of many entry and exit points.
6 - Forex trading online is commission free!
That's right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you'll find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of the bid/ask spread, and that's it. No longer any need to compute commissions and fees when executing a trade.
7 - Forex trading online is instant!
The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!
Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!
Keith Thompson is the webmaster of Forex Trading Today; a blog focusing on the latest Forex news and resources.