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Advantages of Trading FOREX Over Stocks and CommoditiesThere are many advantages to Trading FOREX as your main income generator. Let's start by something that may be worrying you already. "Do I need a Diploma or some kind of Certification to trade FOREX?" The answer is this: When attempting to make more profit than losses on the fluctuation of exchange rates between major currencies (i.e., Trading the FOREX), nobody is going to ask you for a diploma, a formal license or verify the amount of hours you've spent studying the Foreign exchange market and banking industry. All you need is the proper training. But this is not the only advantage you get when trading FOREX, compared to other ways of investment and speculation; i.e. Stocks and Commodities. You have a whole bunch of advantages over these other options that will be enumerated in the following paragraphs. The Main Benefits of Trading the FX Spot Market: 1): FOREX is the largest financial market in the world. With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility. 2): FOREX is a TRUE 24-hour market. The FOREX Market never sleeps. Trading positions can be entered and exited at any moment - around the globe, around the clock, six days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night. 3): There is never a Bear Market in FOREX. You can have access to a seamless, mutually-inclusive (two- way) exchange of currencies. Meaning, because currencies trade in "pairs" (for example, US dollar vs. yen or US dollar vs. Swiss franc), one side of every currency pair (for example, USD/JPY - JPY = YEN) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long or short. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means you have equal potential to profit in both a rising or falling market. 4): High Leverage - up to 200:1 Leverage. You are permitted to trade foreign currencies on a highly leveraged basis - up to 200 times your investment with some brokers. This is primarily attributed to the higher levels of liquidity within the currency markets. Standard 100,000- unit currency lots can be traded with as little as 1% margin, or $1,000. Mini FX accounts are permitted to trade with just 0.5% margin -- in other words, just $50 allows you to control a 10,000-unit currency position. Futures traders, who are accustomed to margin requirements generally equal to 5%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there is no comparison. If you are looking for an efficient use of trading capital, this is it! 5): Price Movements Are Highly Predictable. Although currency prices in the FX market may be volatile, they generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the correct "technical" methods. Unlike stocks, currencies rarely spend much time in tight trading ranges and have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, which provide for multiple opportunities to enter and exit positions. 6:) Commission-free Trading and Low Transaction Cost When you trade FOREX, through one of our recommended brokers (this info is in our private resources section), you'll do it totally commission-free! These brokers don't charge commissions to trade or to maintain an account, and that goes for all clients trading the FOREX through them, regardless of your account balance or trading volume. Even Mini FX traders can buy and sell currencies online, commission-free. What about trading fees? There are none of the usual fees to which futures and equity traders are accustomed -- no exchange or clearing fees, no N_F_A or S_E_C fees. Because currencies trade over-the-counter (OTC), via a global electronic network -- in FOREX, what you see is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage. In the equities markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs. So, if FOREX broker don't charge commissions, how do they make money? Like all traded financial products, over-the- counter currency trading involves a bid/ask spread, which represents the prices at which your counterparty is willing to trade. Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading. 7): Instantaneous Order Execution and Market Transparency. Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the Enron scandal), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than companies). Because of this transparency, as an FX trader, you will be able to exercise risk management strategies in accordance to the fundamental and technical indicators we teach at RapidForex.com The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds. Markets that do not offer executable prices and force traders to absorb slippage obviously compromise the trader's profit potential considerably. In the forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine. There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays. Omar Vargas
 MORE RESOURCES updated Tue. March / 02 / 2021Forex Trading – How Do I begin? - NuWireInvestor NuWire Investor OANDA clinches two TradingView Broker Awards; Launches TradingView partnership in UK and Europe PRNewswire The Currency-Market Snoozefest Might Not Last The Wall Street Journal How to Trade Commodity Currencies in Forex Trading Moneyshow.com 3 Simple Forex Trading Strategies Mighty Gadget Retail forex trading – and the Internet's role Feed Leader 2 crypto currency trading platforms shut down by New York Attorney General WWTI - InformNNY.com Comprehending Forex Trading Signals Live Bitcoin News How to Trade the Forex Market Omega Underground Moscow Exchange FX, Derivatives And Precious Metals Markets Now Open At 7 AM MSK Exchange News Direct How to Start Home-Based Business with Forex? The African Exponent USD/JPY: Can Spend A Bit Of Time Above 106 Before Heading Back Towards 104 In 1-Month - NAB Forex Crunch How to increase consistency in making money doing Forex Trading Australian Times Binance Claims its Peer to Peer Digital Assets Marketplace has Become one of its “Key Features” Crowdfund Insider Japan shares lower at close of trade; Nikkei 225 down 0.86% Investing.com India Forex Today: US Dollar Continues to Advance DailyForex.com What Is Forex Trading? Forbes GBP/EUR: Pound Strengthens, German CPI In Focus Currency Live Fed fund futures price in a rate hike in 2021 Forex Crunch Trading Forex For Living – is it for real? TechFinancials Forex Trading Guide 2021: Universal strategy “Wild River” City Telegraph Daily market commentary: Oil is back in the green - Leaprate Forex Trading News Leaprate Forex Trading News GBP/USD Forecast: British Pound Recovers in Late Trading DailyForex.com Embarrassing Mistakes of Forex Traders - PropertyWire Property Wire Daily market commentary: Share markets edged higher amid rising risk-on trading sentiment Leaprate Forex Trading News What is the Safest Form of Trading? LatestLY Forex Market: Unlocking Opportunities for Investors Visual Capitalist The 6 Best Online Forex Trading Classes of 2021 Investopedia GBP/INR Corrects Lower After Hitting Highest in 5 Years Currency Live Forex Brokers: Are They a Scam? | Investing | US News U.S News & World Report Money Next Forex Trading Terms You Need to Know Before Trading North Forty News A Forex Trading Guide For Beginners | Sponsored | state-journal.com State-Journal.com The FINANCIAL - Making Money By Forex Trading The FINANCIAL Everything To Know About Getting Into Forex Trading GQ Australia Facts You Need To Know About Forex Trading Forbes India The Participants in Forex Trading and their Role in the Market Finance Magnates Foreign exchange data wars heat up as rivals take on ‘Big Two’ Financial Times
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