Benefits of Forex Trading
There are no commissions involved in forex trading which is a great advantage. You will be able to save money in this case. In forex trading there are no clearing fees, exchange fees or brokerage fees involved. There are no government fees either because the government has no involvement. Bid-ask spread is what compensates traders. Another advantage of forex trading is that you will not interact with middlemen. You can only trade directly with the market. The prices on the currency pair are named by the market.
Contract sizes in forex trading are not fixed which is another advantage. This means you will determine your own contract size. This is a great advantage because you will be allowed to trade with a small account. Another benefit of forex trading is that transaction costs are very low. Low transaction costs are common in forex trading. The retail cost in large transactions is also very low.
Another advantage of forex trading is that the market operates on a 24-hour basis. You do not have to wait for it to open. People with busy schedules can highly benefit from this. They are able to take advantage of their part-time hours. Forex trading is of great benefit because no one can actually corner the market. The forex trading market is huge which means the participants are also many. This means that no single entity can control the market price. In this case it appies for both the current and extended period of time.
Another advantage of forex trading is that traders get a lot of leverage. A small deposit can actually control a large contract value in this case. This leverage is helpful to traders because they can make huge profits. This leverage also enables traders to keep risk capital … Read More..Read More »