Forex trading is a very exciting activity that requires a person to have a mix of discipline and analysis. With the right knowledge and skills to read charts or financial reports, there are plenty of opportunities to make a profit by buying and selling currency pairs. Here are some reasons why the Forex market is so popular:
Most people using the forex market have the option to trade directly without relying on any intermediaries to broker the transaction. All prices for a currency pair are determined by a fixed market which helps to make the business activities meaningful.
There is no commission
Forex trading does not depend on brokerage fees, exchange fees or clearing fees. Most brokers involved in the Forex market earn a commission / bid / spread amount. Under normal business conditions, the bid / ask spread is often less than 0.1%. However, for high volume traders, it can be reduced to about 0.07%.
24 hour market
The Forex market is open and available for trading at any time of the day or night. Leaving to part-time traders ensures that leisure time is limited. Whether in the morning, at noon or at night, it is possible to trade with other active traders anywhere else in the world.
Short entry barrier
Forex market traders have the option to start with a very small trading account that can be as small as / 20/25. This is completely different from futures, options or stock markets, which require a sufficient trading account to get started.
A basic micro or mini account is a practical option for a first time trader. Gaining more start-up capital than the empty minimum is more beneficial though the low entry barrier will be appreciated by an individual who has a small amount for a low investment.
Wide open market
The forex market is like a size and it is impossible for any single entity with so many active traders to have a big impact on market prices for a long time.
Access to free resources
Most brokers involved in forex trading offer a variety of free resources to help you learn the basics. This may include opening a demo account to build your skills while practicing. Also, there are plenty of charting services and real-time news feeds to stay in touch with the latest information.