- Forex is the largest financial market in the world.
It is one of the most liquid markets in the world, if not the most liquid. The daily volume of the Forex market is over 5 trillion dollars a day.
- Trade when you want, where you want, where there is the internet, 24 hours a day, 5 days a week.
There is no central or public exchange, and Forex has been designed to be accessible for big banks and ordinary people at all times. For example, in the stock market, you can trade only at certain times. At other times the market is either closed or has extremely low liquidity.
- Low costs for trading and no trading platform fee.
The Forex broker’s market data are free, unlike futures, stocks, or options, where you have to pay for the data. The same applies to trading platforms. Futures and stock trading platforms can cost up to $250 per month or more. Commission costs are also less in the Forex market. At the same time, there are trading accounts without commissions and without swaps. The only fee associated with a Forex trade is that you start with a few pips negative on each trade due to the spread between bid and ask.
- Market Transparency
The regulation of Forex brokers has reached such a level that you no longer have to worry about the safety of your funds. Regulators conduct in-depth audits, and many of them have a compensation fund from which money is paid out in the event of a broker’s insolvency.
- Equal profit opportunities in a rising or falling market.
The Forex market does not have a structural bias. For example, most stock markets have a bullish bias, and very few brokers allow you to sell stocks without having them in your portfolio. There is no such thing in the Forex market. An inherent feature of the Forex market structure is that it is equally easy to buy and sell at any time without having one or the other currency in your account.
- High leverage.
This may seem like a bad thing to many people, but when controlling risk, it allows you to manage a lot of capital or open positions on instruments that require a lot of margins. For example, on the futures market, the leverage is in the range of 1:20-1:50, and on the stock market, the leverage is 1:1-1:5. Forex brokers usually offer leverage from 1:200 up to 1:3000.
- Mini and cent accounts make it easy to get started.
There are many Forex brokers that offer mini and cent accounts. For example, at such brokers, you can open a $1 trading account, and the balance will be displayed as 100 cents. In the futures or stock market, the leverage is much lower, which increases the need to have accounts starting at a minimum of $2500. With the appearance of micro futures, that threshold decreased to $500, but it’s still a lot more compared to the Forex market.
