Advantages of Forex Trading

Forex Market is the fastest expanding market in the entire world. The number of registered Forex traders is multiplying each day and many new traders and investors are entering the FX market due to its numerous advantages. If you are also thinking to be a part of the FX market, then keep reading as you will come to know about many advantages and benefits of the FX trading at the end. Here are some major advantages of the Forex market/trading.

Forex Trading (Image Reference)

•  Forex market is the most liquid market of the world; no other market can be compared with the FX market in terms of liquidity. This is because pure currencies are traded in the Forex market and US dollar is the major currency of the market. Almost over 85% of trades carried out in the market include USD ($) in any form, which itself is very liquid. So highest liquidity is the basic advantage that Forex market has over other markets.
• Forex market remains open 24 hours a day, 5 days a week. So traders don’t have to sit and wait for the market to open, rather they can start trading at any time of the day. The FX market has 3 major key centers which have different opening and closing timings making a 24 hour platform for the entire trading network around the globe.
• It is the most leveraged market in the world where trader has to invest 1% of the total capital while the remaining 99% is invested by the broker. This particular advantage is not available in any other market, business or investment opportunity.
• Forex traders have the ease to trade electronically from anywhere. All the Forex trading activities are carried out electronically over the internet. You don’t need to visit the market physically to buy or sell currency pairs. This feature of trading electronically over the internet has added millions of part-time trades, which is a positive sign for the market.
• The capital requirement for the Forex traders is very flexible and is pretty low. You can start your FX trading career with $200. No other business offers such low investment opportunities.