In trading FOREX, traders need not to pay for various fees like exchange fee, government fees and brokerage fees. FOREX trading brokers earn from the spreads, or the different between the bid and ask of a certain currency pair.
Middle, fixer or whatever you may call it is not available in FOREX trading. Traders of FOREX are given the chance to automatically to trade directly to the market responsible of the pricing.
Unlike when trading futures where lot sizes are determined according to the exchanges, in FOREX, there is no fixed lot size. If in trading silver 5,000 ounces is the standard-size, with FOREX trading, traders are free to choose his or her own lot size.
In trading FOREX, transaction costs are normally at less than 0.1% during normal market conditions and larger dealers have lower spreads, which sometimes are at 0.07%.
FOREX traders need not to wait for a certain hour to start trading. This is because; the FOREX market is open 24 hours a day. In an entire trading week, the market opens Monday morning during the opening of the Australia session and closes in Friday afternoon during the closing of the New York session. This is an advantage to those traders who want to trade part time, as they can freely chose their own time of trading. They can opt to trade in the morning, afternoon, evening, dawn or in between.
The FOREX market has millions of participants making it no single entity can control the market movement, not even a certain country’s central bank.
FOREX trading startup capital is lower compared to stock trading, options and futures trading. With FOREX trading, one can start trading with as little as $25 initial deposit through numerous brokers offering mini and micro mini trading accounts.
Although it is not advisable to trade with a minimum a deposit, however, with its low initial deposit requirement, people who have limited start-up capital can start trading FOREX immediately.
Learning to trade FOREX is as easy as 1 2 3 with free stuffs available almost every FOREX website available. After learning the basics, one can already start practice trading using a DEMO account, which is available in almost all online FOREX brokers using the virtual money offered by these brokers.
With millions of FOREX traders worldwide, the FOREX market is highly liquid. Meaning, one can easily buy or sell a certain pair with just a single click of his or her mouse, as there will always be someone on the other side of the market willing to do the opposite. In addition, one can even have their trading platform set to open at a certain price and close at a desired profit. In this way, one will not miss.
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