Advantages Of Forex Trading

Forex trading has some really big advantages when compared to stock market or share trading. Here are the big 4 benefits:

1. No Broker Commissions – Forex dealers do not charge broker commissions. Their income is derived from the difference between buying and selling prices, which is also commonly known as the “spread”. On most trades this is generally a fraction of one percent of the trade value.
2. A market that is open 24hrs – The Forex market unlike the stock markets is open on a 24hr basis 5 days a week. You can trade anytime between 0:00AM GMT on Monday morning to 10:00PM GM on Friday afternoon.
3. Stable market – It is virtually impossible for an individual or a company to artificially influence the Forex market. This is as a result of massive volume of daily trading. This is very different to the stock market where individuals can influence the value of share prices by for example insider trading or by falsely sending out stories that will influence buying or selling activity.
4. Trade on borrowed capital – You can trade on the Forex using capital that is borrowed. This is known as margin trading. Basically you use between 0.5 and 4 percent of your own funds to take control over a much large volume of borrowed money. The outcome is the ability to effectively leverage your investment. The trading on the Forex is carried in lots, with a standard lot being $100,000, with some dealers allowing you to trade in smaller lots known as Mini and Micro lots.
   

Click Here for our recommend online forex trading platform