There’s got to be an advantage or two to doing something that can increase your knowledge base, skill set and income, right? Otherwise, what is the point of bothering to get involved in the first place? Well, with Forex trading there is a number of different advantages that make this more than a hobby to many. Let’s take a look at some of the more attractive advantages.
1 – Zero Commissions
Well, basically there are no direct commissions. With the Forex trading platform a trader can participate and not have to pay out government fees, brokerage fees or even exchange fees. The way in which a retail broker makes his (or her) money off of your trading activity is through the bid/ask spread. We’ve covered that elsewhere on this website so you can fully understand the mechanics behind that part of the system. Otherwise, you won’t see someone in a suit following you around seeking a commission of any kind.
2 – Where’s The Middleman?
Oh, that’s right. There aren’t any. You get to trade directly with the market without anyone else getting in the way or skimming off a share from the top. This alone allows you to build your trading career without concerns of some bozo riding on your coattails so they can benefit from your hard work.
3 – Unlimited Lot Sizes
Well, depending on what kind of trading you do, you have various limits that have to be met but you could potentially start trading with as little as $25.
4 – Costs of Transactions Are Low
We said there are zero commissions, but there are fees that come from your transactions. They are minimal. In other words, very, very small. So small in fact, you won’t be wondering when or if you will be able to get ahead because of the transaction costs. Don’t worry, they are such a small amount that you can’t help but get ahead if your trades are successful.
5 – All Day, All Night
The Forex trading party never closes. Sure, markets in different parts of the world have opening and closing times but thanks to overlapping time frames you can trade all day and all night. How cool is that?
6 – There’s No Monopoly
You read that correctly. Because the conditions are always changing there is no possible way that the currency trading market can be controlled by a single entity. This opens the floor up for anyone – we mean anyone – who has the basic skills and knowledge to participate.
7 – Lotsa Liquid
As the Forex market is so freakin’ big, there’s a ton of liquid. Well, actually there’s massive liquidity. This is an advantage to you because chances are in your favor that the trade you make will reach someone interested in buying from you almost instantly.
8 – Freebies!
A demo account allows you to test the waters of Forex trading without any money on the line. It gives you time to learn the system, hone your skills and understand how to use, read, comprehend and trade with charts, data and all kinds of nifty stuff. It also costs you nothing to use these materials through a demo account.