There are various forms of trading where you can join and invest your money. Examples are Forex trading, stocks trading, binary options trading and commodities trading. However, Forex and stocks trading are the most common and popular choices among traders.
Forex trading is very different from stocks trading. Knowing why it is not the same with the latter will help you in choosing the right market where you should enter and make an investment. You have to know that Forex trading comes with lots of benefits than stocks trading. In fact, it is considered the most suitable form of trading for both novice and small investors. The following are the benefits that only Forex can offer:
Cheaper Transaction Costs
Forex traders don’t encounter hidden charges as they aren’t paid by conventional commission-based payments. The fees paid to them will be calculated directly from the trades through proffer ask spread. In this form of trading, spread pertains to the difference between the amount of money you paid for the currency and its sale cost. Spread is typically expressed in points or “pips”.
The Market is Open for 24 Hours
In Forex, you can trade even in the middle of the night as the market is open for traders 24 hours per day. It is a great advantage for every small investor who is just new in joining the trade. This will also let the traders juggle his or her schedule over his or her trading opportunities. He or she can set a specific time for joining and entering the market.
Quick Trade Execution & High Liquidity
Forex trade means that you are trading cash. There are no other types of investments that have more liquidity over cash and so, Forex trades are executed almost quickly. Forex also doesn’t have a lag time.
Having Leverage & Margin
The capability to trade on margin is among the privileges that Forex trading can give to traders. This will give you a significant leverage in your trade and it gives you a higher chance to earn higher profits while you invested less.
Forex is Easy to Learn and Understand
Unlike stocks trading, Forex is easier to learn and understand. There are only 7 major currencies to be followed so that you will be able to allocate more time for every currency. In fact, most successful traders only prefer 3 to 4 of these currencies and they master them in order to obtain success.
No Bear Markets
In Forex, you have the power to make money whether you trade long or short. It does not matter if the prices of the currencies go up or down but as long as your predictions are correct and accurate, your chance of losing will be minimal.
It Cannot be Easily Influenced
Forex market is very huge and nobody can influence it for such a long time. Forex is opposed to stocks trading wherein one unfavorable TV appraisal of a stock owned by a particular company can affect the market easily.
With these advantages, there is no doubt that Forex trading is truly a great opportunity to make and earn revenues. This form of trading offers a very lucrative opportunity for beginners and small and individual investors. If you are new to the trade industry and you are not so sure about your fortune there, why don’t you choose to enter the Forex market? Remember, Forex trading will always be a good choice for a beginner like you.
Forex trading is very different from stocks trading. Knowing why it is not the same with the latter will help you in choosing the right market where you should enter and make an investment. You have to know that Forex trading comes with lots of benefits than stocks trading. In fact, it is considered the most suitable form of trading for both novice and small investors. The following are the benefits that only Forex can offer:
Cheaper Transaction Costs
Forex traders don’t encounter hidden charges as they aren’t paid by conventional commission-based payments. The fees paid to them will be calculated directly from the trades through proffer ask spread. In this form of trading, spread pertains to the difference between the amount of money you paid for the currency and its sale cost. Spread is typically expressed in points or “pips”.
The Market is Open for 24 Hours
In Forex, you can trade even in the middle of the night as the market is open for traders 24 hours per day. It is a great advantage for every small investor who is just new in joining the trade. This will also let the traders juggle his or her schedule over his or her trading opportunities. He or she can set a specific time for joining and entering the market.
Quick Trade Execution & High Liquidity
Forex trade means that you are trading cash. There are no other types of investments that have more liquidity over cash and so, Forex trades are executed almost quickly. Forex also doesn’t have a lag time.
Having Leverage & Margin
The capability to trade on margin is among the privileges that Forex trading can give to traders. This will give you a significant leverage in your trade and it gives you a higher chance to earn higher profits while you invested less.
Forex is Easy to Learn and Understand
Unlike stocks trading, Forex is easier to learn and understand. There are only 7 major currencies to be followed so that you will be able to allocate more time for every currency. In fact, most successful traders only prefer 3 to 4 of these currencies and they master them in order to obtain success.
No Bear Markets
In Forex, you have the power to make money whether you trade long or short. It does not matter if the prices of the currencies go up or down but as long as your predictions are correct and accurate, your chance of losing will be minimal.
It Cannot be Easily Influenced
Forex market is very huge and nobody can influence it for such a long time. Forex is opposed to stocks trading wherein one unfavorable TV appraisal of a stock owned by a particular company can affect the market easily.
With these advantages, there is no doubt that Forex trading is truly a great opportunity to make and earn revenues. This form of trading offers a very lucrative opportunity for beginners and small and individual investors. If you are new to the trade industry and you are not so sure about your fortune there, why don’t you choose to enter the Forex market? Remember, Forex trading will always be a good choice for a beginner like you.
0 Comments: