Have you ever wondered why retail trading is getting so much popularity? Well, when I started as a beginner, I often used to ask this question and I got relevant answers from expert fx traders. Retail forex transaction refers to a small segment of the largest trading market where individual traders predict exchange value of various currencies from different countries.
While doing research on the growing popularity of distributive trades, I got to know four possible reasons that depict what makes this platform a hit in today’s online trading business. And here are the reasons –
Four reasons for the growing popularity of retail forex transactions:
- In early days, there was no option for online trading and even if someone claims its presence, it is an un-denying fact that the internet was just too slow for trading and data cannot be transferred as fast as it is done today.
- Fx trading used to be a platform for giant financial institutions and big players. But now, traders can trade with just USD 25. Isn’t it something amazing? The brokers are getting smarter day by day and thus they are making money from a large number of distributive trades than a few big investors.
- The fx market is not as much volatile as it used to be before. More and more retail traders are coming into the picture due to the inception of the online trading option.
- The world of internet marketing has emerged with the inception of online trading. This marketing industry has reached millions of people around the globe urging people to invest more in the trading business. These marketers have implemented a number of trading course that train people to invest in the trading business. Besides this, trading is making its way to reach to a large number of people through various social media platforms such as Facebook, Twitter, Google+, etc.
What are the benefits associated with retail forex transactions?
Practicing retail fx trading yields a number of benefits such as
- It is a 24hours marketplace
Yes! You heard right. The fx market is open round the clock, and here trading operations take place continuously. The reason behind this is the geographical dispersion of different trading markets around the world. This market remains close on Saturdays and Sundays.
- Free commission
Well! That’s an interesting fact to mention here. Trading in the retail market does not involve any fee or commission to the brokers. Traders pay only for the amount of trade involved, and the amount can be as small as 4 decimal.
- A place to get high leverage
Traders operating in the fx market may get high leverage from brokers. In fact, they may even get some favorable credit terms in respect of the amount they invest per trade. This kind of facility improves the chances of getting more profit for a small amount of investment.
- Higher trading market volume
The fx market has a higher trading volume that can even range from $4 trillion to $6 trillion dollars per month. Therefore, no other market can compete with such type of volume.
A final note
Hope from the above discussion, you got a brief idea why retail forex transaction is the most feasible option for individual or beginner traders who want to start with small investments. Therefore, I wish all traders a very Happy Trading!