The majority of people who already trade on Forex are aware of their motives and reasons why they do it. But what about beginners who don’t realize properly WHY Forex is better than other markets? Today, JustForex team is going to tell you about the main advantages of trading currencies. You’ll get an answer to the question:
“Why should I choose Forex?”
- The scale of the Forex business is gigantic. More than $5.1 trillion is traded every day here. So, everyone can join it. And there is always money to work with. Of course, it’s hard to control such a huge market. But you can be sure that your risks can be minimized, as well as profit – maximized. The secret of success lies in learning and practicing.
- Choose the most comfortable time to work on Forex by yourself! The market is open for 24 hours from Monday till Friday. You’ll have a chance to trade and generate additional income even if you have a regular 9-5 job. Later, if you like trading more than your everyday work, you’ll be able to switch to a full-day trading.
- Freedom. You’ve read it right, it’s literally! With Forex, it’s possible to earn money wherever you want, even sitting with a laptop at the seaside. What can be better? It is so, because the market is online and is not located in some certain place. Of course, you can choose your broker geographically, but it doesn’t really matter. People can feel comfortable working with companies by just contacting them by phone or email.
- A quick start with any amount of money, even a couple of dollars, makes Forex reachable for everyone. You can trade safely with not so much funds, can take risks and use high leverage to achieve your trading goals. For example, you can manage $100000 after depositing just $1000. Moreover, there are also mini-lots for beginners where 100-times less money is required.
- It’s no matter whether the market rises or falls. You can earn money from both situations. Everything what a trader needs is reading charts correctly, performing technical and fundamental analysis and noticing entry and exit points. The market is rarely flat. It’s mostly volatile.
- This market is completely transparent. You can read the news that can affect the price and predict its movement. What you see is what you get. That’s why this kind of investing is good for everyone who wants to control the funds.
- No middlemen are here. You trade directly with the market that is responsible for quotes of a certain currency pair. Of course, you trade through brokers, but these companies just transfer your orders to the interbank. You always know whether you pay some additional commissions or fees. By the way, JustForex broker always tries to minimize them for you.
- An easy choice of a trading asset. For instance, global exchanges (NASDAQ or LSE) offer nearly 40.000 stocks for trading. On Forex, there are only 10 major currency pairs. Still, traders are allowed to work with commodity currencies, exotics, bitcoins and metals, so the choice is really vast.
- A reduced market risk. Forex can’t become unavailable for trading. Unlike trading shares, when they can fall simultaneously, currencies are always alive. Even if one pair is down, another one is up.
- Learning for free. We don’t mean that there are no paid courses on Forex, but if you have enough will, you’ll be able to educate yourself. Profitability will be your result. Just take some time to read e-books, articles, watch charting services and news. You can learn both offline and online, for example, in the Babypips school. More theory about trading can be found on Investopedia.
To get more information about the latest news and their possible impact on the traders’ work, use Investing, Barchart and FXStreet to check them. More analytical info and trading tips can be found on ForexFactory.
Finally, open a free Demo account and practice trading using virtual money. See how everything works in real life. Moreover, you can use it whenever you want, even if you’ve already opened a live account.
Surely, we can name even more reasons to start Forex trading, but these were the most common ones. You can have your own motivation, for example, a wish to earn and save money for some expensive purchase or to make your life more comfortable… Anyway, Forex gives an opportunity to earn money. All you need is learning, practicing and becoming profitable.