What Benefits from Forex Market Trading

If you’re looking to diversify your current investment portfolio, you should seriously consider Forex market trading. The Forex market (trading of foreign currencies) is an exciting investment arena, which offers countless benefits or advantages over other investment tools. Once you’ve entered the market, there’s no going back – the pluses outweigh just about any other investment opportunity. Listed below are some of the main benefits/advantages of investing in the Forex market.

Low margins

The Forex market has some of the lowest margins in the industry. With margins going as low as .5% (versus a 5% margin for future markets), you can really leverage your money. If you invest $1,000 with a 1% margin on one of the many Forex trading system platforms, you can trade up to $100,000 (leverage of 100:1). With a .5% margin, you can trade up to an amazing $200,000.

Longer trading hours

With the equity market, trading is limited to five days a week (Monday – Friday, from 8:30 am EST to 5:00 pm EST. The Forex market, on the other hand, trades six days a week, 24 hours per day (from Sunday, 7:00 EST – Friday, 4:00 pm EST). Just imagine - you can trade at 9:00 pm Sunday night from the comfort of your own home on any one of the Forex trading system platforms. These systems also provide 24/7 customer service.

No commissions

Nearly all Forex brokerages offer services without charging commissions. Other investment markets, like the equity market, charge commissions plus brokerage fees. These fees can take a huge chunk out of any profits earned. Transaction fees do occur with the Forex market but are limited to the bid – ask spread and can be as low as one pip (unit).

High liquidity

With over 2 trillion dollars traded everyday, the Forex market provides the highest liquidity in any investment market in the world. You have the freedom and luxury of opening and closing practically any possible position, which means no limits are placed on trading limits. This is even true when placing orders online on a Forex trading system, even at 2:00 am Monday morning.

Minimal investment

You can start trading in the Forex market with as little as $300 down, which is much lower than most other investment markets require. With online Forex trading system platforms, trading has never been easier.


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