The Forex market is the biggest financial market in the world. So, when compared to other financial markets, it has great advantages such as:
1 – The Forex market is open 24 hours a day, from Sunday to Friday. This allows anyone to trade, no matter where you’re located.
2 – The leverage offered by Forex brokers is huge. Depending on the broker you’re using, you can get a 100:1, 200:1 or even a 400:1 leverage, which means you’ll be able to trade $100,000, $200,000 or $400,000, respectively, for each $1,000 you have in your account.
3 – The margin requirements are low. A Forex trading margin can be set at 1%.
4 – High liquidity: The Forex market has a daily turnover of more than 3.2 trillion dollars. Higher turnover means easy and quicker liquidity of your funds. So, no matter at what time you’re trading, your orders will not suffer slippage because there is always someone buying and selling the currency pair.
5 – You can profit in bull and bear markets. It doesn’t matter if you want to buy or short sell a currency pair. There are no special requirements or rules. It’s simply the same.
6 – Low investment: You can start trading Forex with just $50, with some brokers. If you try to open an account to trade other financial markets, you’ll be asked for a much higher start up capital.
7 – There’s no middlemen, no market makers. The Forex market allows you to trade directly.
8 – Nobody can corner or “force” the Forex: The Forex market is so huge and has countless participants that no unique participant, not even a powerful central bank, has the power over the market price for an extended period of time.
9 – Free commission fees: In Forex the commission fees are zero. The only cost when you’re buying or short selling a currency pair is the spread.
10 – You can trade Forex from anywhere in the world. All you need is a computer and an Internet connection.
11 – Free platforms: Since the Forex market is so competitive, most brokers offer good trading platforms for free. This is really different from stocks where sometimes you need to spend up to $200 per month for a good charting platform.
12 – Free demo accounts: Most Forex brokers offer you a demo account for free. With this demo account you can trade with virtual money and learn how to trade Forex successfully. This is extremely useful since you can develop, test and define your strategies without risking any money. You can keep trading on a demo account until you’re making good money and all of this experience won’t cost you a dime.
13 – You can build and set up automated trading systems that trade for you 24 hours a day. Most brokers on the market allow you to set up this kind of system and you can use a free trading platform like MetaTrader that allows you to build, back test and even trade.
thank you for your information,however i want you to tell me how i can automate my trading system
Maris: usually the best platform to transform your manual system into an automatic system is metatrader4. If you have metatrader you can access the Metatrader editor which allows you to code any system there.
Thank you for sharing this information it could not have come at a better time
I fully agree with author opinion.