Today I would like to share with you 6 reasons why the Foreign exchange should truly be part of your investment strategy and trading portfolio. Forex is very different when compared with any other financial market in the world and I'm going to show you why; let’s get started with this edition of our currency trading tips.
Free Demo Accounts:
Most Forex brokers will give you a absolutely free demo account that you can open in 5 minutes that allows you to use fictitious money (you can open your demo account for $1000, $10,000, $50,000, and even $1,000,000... whatever amount you want). Trading a demo account will allow you to enhance your trading skills without the need of risking your hard earned cash. You can obtain a demo account from almost any broker and this practice will begin to boost your trading instantly.
No Commissions:
There aren't any clearing fees, no brokerage fees, and no commission fees. How is this possible? Well, your brokerage service makes its gains by something referred to as the “Bid-Ask Spread” (the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it). This allows you to improve your profits and reduce your trading cost.
A 24-hour market:
The Foreign exchange market is the perfect market for the busy trader. From Sunday at 5:00pm EST until Friday at 5pm EST the market is open; the Forex never sleeps. This is a advantage for people who don’t have much to time to trade and would like to invest in FX part time. You can select when you want to trade: in the morning, the afternoon, at night, during lunch, or even in your sleep (by employing automated trading systems). The possibilities are countless.
No-one or organization can corner the market:
The Forex is such a huge market that no entity (not even a multinational financial institution with millions to trade) can corner the market or manipulate it for an extended length of time, this provides the private investor with the chance to compete with the big boys.
Leverage:
When trading Forex a small amount of capital can control or trade a much larger total contract value. Leverage can give you the possibility to make good gains while you maintain your risk at a minimum. Nevertheless, leverage can be just as ugly as it is pretty. While it can produce you large sums of money it could also destroy your account if you lack proper money management expertise. As a last words of advice, leverage can lead you to large losses as well as large gains, I will get more into detail and explain leverage to you in a future article.
Small starting capital is necessary:
In contrast to other markets that require lots of money to even open an account, in the Forex several brokers assist you to open an account with as low as $25. With such a low starting capital, just about any investor could get started in Foreign currency trading.
It is time to take your future into your own hands, and it can be achieved through Foreign currency trading. The market offers you a H-U-G-E chance to profit week after week and with several incredible benefits that were not available to us in the past. Stay tuned to learn more about the markets and its enormous possibilities. I'll be posting more currency trading tips and ideas on my upcoming articles.
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