More and more up to date investor and business people are diversifying their conventional investments like futures, bonds & commodities together with foreign currency because of the next reasons:
1) Foreign exchange is the largest financial market in the world.
Using a daily trading amount of over $1.5 trillion, the spot FOREX market can easily absorb trading styles that dwarf the capacity from a other market. In reality, when compared with the $50 million daily market for shares or the $30 billion commodity market, it becomes quickly apparent this gives an individual, and millions of other FOREX traders, almost limitless trading liquidity and flexibility.
2) FOREX is often a True 24-hour market.
Forex never sleeps. Trading roles can be entered and exited at any moment around the globe, around the clock, Five.5 days a week. There is no waiting for an opening bell such as the case of trading stocks. It is a 24- hour, steady electronic (ONLINE) foreign currency exchange that never sales techniques. This is very desirable for you if you want to trade on the part-time basis, because you can select when you want to buy and sell: morning, noon or even night.
3) There’s never a Bear Market in FOREX.
You can have access to any seamless exchange associated with currencies. Currencies business in “pairs” (for example, Us all dollar vs. JPY (Pound) or US buck vs. CHF (Swiss franc), either side of every currency set (for example, USD/CHF) is constantly transferring relation to the other. Therefore, when you buy a particular currency, you are in fact simultaneously selling one other currency in that specific pair. As the industry moves, one of the foreign currencies will increase in price versus the other. Needless to say, it is up to you to choose the correct currency to get long ( you bought) or perhaps short( you marketed).
4) High Power – up to 300:1 Leverage.
You happen to be permitted to trade foreign currency echange on a highly utilized basis – up for you to 400 times neglect the with Fenix Capital Supervision, LLC and with some other broker agents.
Standard 100,000- US$ currency lots can be traded with as little as 2.25% margin, or $250.
Little FX accounts tend to be permitted to trade with only 0.25% margin, which means, just $25 allows you to handle a 10,000-unit currency situation.
Futures traders, that are accustomed to margin specifications generally equal to 5-7%-8% of the contract value, can immediately recognize that the foreign exchange market provides much higher leverage, and for inventory traders, who ought to post at least 50% edge, there s no comparison. In case you re looking for an efficient using trading , trade the foreign currency market.
5) Price Movements might be Highly Predictable.
Currency prices inside the FX market normally repeat themselves within relatively predictable menstrual cycles, creating trends. The particular strong trends in which foreign currencies develop can be a significant advantage for dealers who use the “technical” methods and strategies.
Unlike stocks, currencies have the propensity to develop strong trends. Over 80% of amount is speculative as the name indicated and, as a result, industry frequently overshoots and then corrects itself. As a technically-trained investor, you can easily identify brand new trends and episodes, to enter and leave positions.
6) YOU don’t pay commissions as well as fees to business FOREX
When you trade FOREX, through Fenix Funds Management LLC (FCM) you can do it no cost of commissions and costs , regardless of your account dimensions.
Fenix Capital Management LLC, requires a very low minimum add up to open a broker agent account, only US$ 200 and they do not charge commissions or service fees to trade or to maintain an account, in spite of your account balance as well as trading volume.
7) YOU don’t have to pay investing fees or exchange fees.
There are not one of the usual fees, which futures and fairness traders are accustomed to pay:
NO exchange or even clearing fees,
Absolutely no NFA or SEC service fees.
Because currencies industry over-the-counter (OTC), via a worldwide electronic network, inside FOREX, what you see in your trading screen, is the thing that you get, allowing you to create quick decisions on your own trades without having to fret or account for charges that may affect your own profit/loss or slippage.
In the collateral and commodity marketplaces, you must pay both a commission along with exchange fees. The actual over-the-counter structure of the Forex market eliminates swap and clearing costs, which in turn lowers purchase costs.
8) The best way to Forex brokers make money should they don’t charge income?
Like all traded financial loans, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your current counterpart is willing for you to trade. Your dealer will receive a part of this bid/ask spread.
Because the currency market offers round-the-clock liquidity, you get tight, competitive distributes both intra-day and night. Stock traders may be more vulnerable to liquidity risk and typically receive wider investing spreads, especially during after-hours trading.
9) Market Transparency.
Market transparency is highly desired in a trading environment. The harder the market transparency, the harder efficient the market will become. Unlike other market segments where transparency can be compromised (like in the countless recent scandals), FOREX markets are highly clear (i.e., studying countries, and having access to real-time research / media, is easier than inspecting companies).
Because of this openness, as an FX trader, you will be able to apply threat management strategies in respect to your fundamental as well as technical indicators.
Ten) Instantaneous Order Performance
The FX market offers the highest level of market transparency most of them . financial markets. Because of this, buy execution and load confirmation usually exist in just 1-2 seconds.
In Forex, order delivery is all-electronic and because you will end up trading via an Internet-based platform, instantaneous execution can be routine.
There are no deals, no traditional open-outcry starts, no floor agents, and consequently, no setbacks.( will be continued )