Advantages of Forex

* Small fee: Brokers are compensated for their services through the spread (the difference between supply and demand, or the buying and selling) that are taken at the start of trade or payment.

* There is no fixed order size (lot) for the purchase or sale: the options market, lot size or the contract (order) is determined by the terms of trade. For example, the standard order options to silver is 5000 ounces. At the forex market alone determines the size of your order. This allows traders to participate in the market with accounts of $ 250 but most brokers, even where the broker has a minimum deposit 1 USD!

* No agents: foreign exchange forex trading eliminates intermediaries, and allows to trade directly responsible for the market price to a specific currency pair.

* Low transaction costs: A common transaction cost (the difference between the buy / sell) is usually less than 0.1% under normal market conditions. When a broker can be a major and a range of about 0.07%. Of course, it varies on your leverage.

* Trade takes place 24-hours a day: No waiting to signal the opening bell – from Sunday 24.00 to Friday 22:00 Forex market never sleeps. This is great for those who wish to trade in their free time, because you can choose when you want to trade – morning, afternoon or night.

* No one can influence forex markets: foreign exchange market is so vast and has so many participants that there is no force (or even the central bank) that can control the market price for a longer period.

* Leverage: Forex Market allows to run with the margin deposit can control a much larger total contract value. Leverage gives the trader the opportunity to achieve a nice profit, while simultaneously reducing the risk to invest a minimum. For example, forex broker offers leverage at a ratio of 200:1, which means that with $ 50 deposit trader can buy or sell currencies in the amount of $ 10,000. Similarly, with $ 500, can be traded with $ 100,000 and so on. But beware: Leverage is a sword with two edges! Without proper risk management, this high degree of leverage can lead to large losses and gains?

* High liquidity: with respect to the Forex market so huge, it is also very liquid. This means that under normal market conditions, with a click of the mouse you can currently buy and sell at will, it means there is always supply and demand and can not happen if you decided to”go out”of trading that you do not have anyone to sell you a couple of trade, and that “stuck” in the store. You can even set your online trading platform to automatically close an open position on the desired profit level (a limit order, or take / profit), and / or close if the trade goes against you (stop loss order).

* Free “demo” accounts, news, charts, and market analysis: the majority of online Forex brokers offer ‘demo’ accounts to train trading with Forex news and graphs. All free! These are very valuable resources for “poor” and the smart traders who would like to test their trading skills with virtual money before opening a real (live) account and risking real money. One of the best forex brokers for begginers is eToro

* “Mini” and “Micro” Trading: if you think it would start trading in the foreign exchange market should be a truck full of money, you are wrong! The fact is that, compared to trading stocks and options, it is not the same. Online Forex brokers offer “mini” and “micro” merchant accounts, some with a minimum deposit of $ 250 or even less. Now we do not suggest that you should open an account with a minimal role, but that is what makes Forex available to the average (poorer) individual who does not have a large initial capital for trading. Much more likely bet earnings. We recommend you some of the best forex brokers offering micro account:

Advantages of forex stock market are really many ..

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