Financial Advice Blog

ten REASONS TO START TRADING FOREX!

Additional and more well informed investor and entrepreneurs are diversifying their ancient investments like stocks, bonds & commodities with foreign currency as a result of of the following reasons:

1) FOREX is the biggest monetary market within the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any alternative market. After all, when put next with the $50 billion daily market for equities or the $thirty billion futures market, it becomes quickly apparent this provides you, and legion alternative FOREX traders, nearly infinite trading liquidity and flexibility.

two) FOREX could be a True 24-hour market.

The FOREX Market never sleeps.  Trading positions can be entered and exited at any moment around the globe, round the clock, 5.5 days a week. There’s no awaiting an gap bell as within the case of trading stocks. It is a twenty four- hour, continuous electronic (ONLINE) currency exchange that never closes. This is often very fascinating for you if you want to trade on a half-time basis, because you’ll be able to choose when you would like to trade: morning, noon or night.

three) There is never a Bear Market in FOREX.

You’ll have access to a seamless exchange of currencies. Currencies trade in “pairs” (for instance, US greenback vs. JPY (YEN) or US greenback vs. CHF (Swiss franc), one facet of every currency pair (for instance, USD/CHF) is consistently moving in relation to the other. Thus, when you get a specific currency, you’re actually simultaneously selling the opposite currency in that specific pair. Because the market moves, one in every of the currencies will increase in worth versus the other. After all, it’s up to you to decide on the correct currency to be long ( you obtain) or short( you sold).

four) High Leverage – up to four hundred:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis – up to four hundred times your investment with Fenix Capital Management, LLC and with another brokers.

Commonplace a hundred,000- US$ currency tons will be traded with as little as 0.25% margin, or $250.

Mini FX accounts are permitted to trade with simply 0.twenty five% margin, which means, just $25 allows you to control a ten,000-unit currency position.

Futures traders, who are conversant in margin needs typically equal to 5-7%-8% of the contract value, can immediately recognize {that the} FOREX market provides much greater leverage, and for stock traders, who should post a minimum of fifty% margin, there’s no comparison. If you’re looking for an economical use of trading , trade the Forex Market.

5) Price Movements may be Highly Predictable.

Currency prices within the FX market generally repeat themselves in comparatively predictable cycles, making trends. The robust trends that foreign currencies develop are a vital advantage for traders who use the “technical” strategies and strategies.

Not like stocks, currencies have the tendency to develop robust trends. Over 80% of volume is speculative in nature and, so, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily determine new trends and breakouts, to enter and exit positions.

half-dozen) YOU do not pay commissions or fees to trade FOREX

When you trade FOREX, through Fenix Capital Management LLC (FCM) you’ll do it totally FREE of commissions and charges , irrespective of your account size.

Fenix Capital Management LLC, needs a terribly low minimum quantity to open a brokerage account, solely US$ two hundred and they do not charge commissions or fees to trade or to take care of an account, regardless of your account balance or trading volume.

seven) YOU do not must pay trading fees or exchange fees.

There are none of the same old fees, which futures and equity traders are familiar with pay:

NO exchange or clearing fees,
NO NFA or SEC fees.

As a result of currencies trade over-the-counter (OTC), via a world electronic network, in FOREX, what you see on your trading screen, is what you get, permitting you to create quick choices on your trades without having to fret or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you need to pay each a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

HOW to Forex brokers create cash if they do not charge commissions?

Like all traded money products, over-the-counter currency trading involves a bid/ask unfold, which represents the costs at which your counterpart is willing to trade. Your broker will receive a part of this bid/raise spread.

Because the currency market offers spherical-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders will be a lot of vulnerable to liquidity risk and usually receive wider trading spreads, especially during when-hours trading.

9) Market Transparency.

Market transparency is very desired in any trading environment. The bigger the market transparency, the additional economical the market becomes. Not like different markets where transparency is compromised (like in the various recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and getting access to real-time research / news, is less complicated than analyzing firms).

Because of this transparency, as an FX trader, you’ll be able to apply risk management ways in accordance to your fundamental and technical indicators.

ten) Instantaneous Order Execution

The FX market offers the best level of market transparency out of all the money markets. Because of this, order execution and fill confirmation usually occur in just 1-a pair of seconds.

In Forex, order execution is all-electronic and as a result of you may be trading via an Web-based mostly platform, instantaneous execution is routine.

There aren’t any exchanges, no ancient open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )

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