Many Forex traders can enumerate at least ten different reasons why they prefer to use options and opportunities only the foreign exchange currency market can offer them. You see Forex trading nowadays is the most widespread mean to earn money online in a legal and quite easy way if one knows, for sure, background and nuances dealing with this peculiar type of online trading. Unlike futures or stocks economical markets Forex trading allows absolutely everyone who is ready to learn and be patient enough as well as a risky one in a healthy way to gain profits and real money by selling and buying the currency pairs.
However, all these advantages of Forex trading may offer are still not so clear for Forex newbies and they prefer to refuse from any efforts because they are afraid to lose all their money. Partially such risk always presents but the cons of Forex trading are less than pros and you as a FX beginner and prospective participant can persuade in it by reading about the most beneficial advantages Forex market can only propose.
1) The most obvious Forex trading advantage can boast is lower margin which means a trader can control a huge amount of the currency practically putting up only a small amount of the margin like with futures and stocks speculative processes. Nevertheless, Forex trading presupposes such margin requirements as one percent of the complete value of the holding (comparing with futures such requirements are about five percents). For instance, there is a margin which is required for trading foreign currency exchange and it equals one thousand dollars for every 100 thousands USD and this denotes that a Forex trader can trade with money which is five times more comparing with futures trader's money. In such way one can create a very profitable investing strategy in spite of all the risks which exist in the FX market. Only complete image of how a FX margin trading account works can help you to reduce these risks to minimum.
Monitoring of a margin balance regularly and utilization of stop-loss orders on each open by a trader position will assist in limiting downside risks and prevent from missing margin calls which not usually happen before liquidation of the chosen by a Forex trader positions. Understanding of all these nuances and consulting with experienced brokers and traders can help a newbie to orientate in this complicated, risky but still very profitable trading.
2) Forex trading requires no commissions and exchange fees and again unlikely trading in futures where one needs to pay a certain fee for exchange and brokerage services provides these services totally for free. You see, FX trading is rendered at the international financial market so no wonder that fee is not required but as the con the spread a broker asks for is obviously higher than in futures' trading.
3) Despite the common delusion risks which exist at the FX trading market are easy to limit and even reduce if a trader chooses the right policy and strategy. In addition it should be mentioned that stops are much easier to control as well that is why newbies will have all chances to stay in the benefits even doing their first steps as Forex investors, brokers and traders.
Among other advantages of FX trading many participants call availability of the FX market open 24 hours five days a week which makes it a great advantage comparing with other financial markets and also huge trading resources and opportunities this largest financial market in the world with a daily turnover with more than three trillions USD.