Advantages Of Forex
Handling $1.5 trillion in transactions every day, FOREX is the largest financial market in the world. In comparison, the American stock exchanges, combined, only handle about $100 billion in transactions. Investors are making money in the FOREX market, buying and selling currencies, such as the British Pound, the Euro, the Yen, the U.S. Dollar, and others. But what are the advantages to FOREX investing? Why should you invest in FOREX instead of the stock market?
FOREX is more liquid. As stated above, the FOREX market handles $1.5 trillion in transactions every day. So for any given currency, there will be buyers and sellers. So when you want to buy, there will be a seller, and when you want to sell, there will be a buyer.
FOREX doesn’t have any insider trading. In the stock market, there will be people who get news relating to a particular corporation before others. In some cases, they will use this news to gain advantage over other investors, and buy or sell that particular stock before other investors have a chance. The fluctuations in the world’s various currencies are caused by changes in a nation’s economy. News of these economic changes is available to everyone, at the same time, so no one investor has an advantage over others.
FOREX is accessible. FOREX is open 24 hours a day, 5 days a week. The FOREX market opens on Monday morning in Australia, and it is open until Friday afternoon in New York. Trades can be made online at any time during this period. The stock market on the other hand is only open for a few hours each day.
FOREX is predictible. Stocks don’t always follow predicted trends. They may drop when prediced to go up, and vice versa. FOREX on the other hand follows well established economic trends.
FOREX has smaller investiments. A mini FOREX account can be set up for just a few hundred dollars. FOREX also allows high leverage, around 100:1. This means that you can control assets worth 100 times your investment. For example, if you invest $500 in a FOREX account, you can buy or sell up to $50,000 in assets. In the stock market, the leverage may only be around 2:1.
FOREX has no commissions. There are no commissions for trading FOREX. This means you can buy and sell many times a day, and there will be no commissions to eat up your profits (or add to your losses).
These are just some of the many advantages that FOREX investing has over investing in stocks. Given these advantages, it may be a good idea for you to look around, and learn more about FOREX investing. You can find FOREX brokers online, many of them offer a free practice account, so you can try your hand at FOREX trading without risking any money. So, take a look around, learn about FOREX investing, and give it a try.