Why Is Forex Trading So Popular?

Forex trading has gained immense popularity in recent years as more traders understand what this type of trading involves and the many benefits this unique currency market provides for investors of all sizes. In many ways the Forex market is similar to other investment markets but provides some additional benefits that helps to make it attractive to a wider audience of traders. Many of these Forex traders spread their investments between other more traditional markets and still trade in Forex to increase their returns even further.

Flexibility of Trading

When asked why they like the Forex market over other investment choices, most traders will immediately mention the ease of trading in Forex. The Forex market provides an immense amount of flexibility in the way you trade your investments. For starters, the Forex market is available to trade around the clock during the week. Unlike the traditional stock market that closes each afternoon, the Forex market allows investors to trade whenever they have time and enables them to profit from movements in currency values whenever they occur. This expanded trading window is perfect for part-time traders that january have to work a traditional job and want to trade in the evenings when they have free time.

The ease of trading is another factor that many Forex traders mention when asked why they like the market. You can trade Forex on your PC at home or even when you travel from a laptop, tablet or phone. This mobile access to both your accounts and the market ensures you’ll always be able to take advantage of opportunities, no matter where you happen to be when they occur.

Smaller Accounts Welcomed

Trading traditional stocks normally requires a sizable investment to profit from their slow change in value. This initial investment prevents many smaller or new investors from entering this market and january also limit their gains as their account slowly grows in value. The Forex market requires a much smaller investment to get started that is well within the budget of almost any investor. You can setup a new account with a few hundred dollars and start trading the same day. This low entry point for investing in the Forex market makes it more accessible to a wider range of traders.
Leverage is another way for an investor to amplify their profits in Forex and is typically offered by most brokers, even with new accounts. This leverage enables you to control a larger lot of currency than your investment would allow and enjoy a bigger profit on your investments.

The Forex Market Itself Plays a Part

The volatility of the Forex market is another advantage that allows new traders to offset their other trading activity. The dynamic movement in the price of a currency enables a well-informed trader to reap a sizable profit from a single investment in a very short amount of time. In fact, many Forex traders enter and exit a position in less than a day of trading to realize these profits.

The Forex market also requires a much simpler analysis than more traditional stocks. Because you have fewer choices in Forex, it is easier to find great opportunities quicker than with a market containing hundreds of stocks. Many Forex brokers will also supply the analysis you need to make your investments as part of your account services making your choices even easier.

Trade without a Download Using Webtraders

Trading Forex can be an exciting and profitable way to invest if you have the right tools available to you. Because of the volatility of the Forex market, small profitable changes can happen very quickly that require sophisticated software that allows you to react in time. This normally means downloading and installing a large program that requires a powerful computer to run. If your computer is older or slower it can affect the type and speed of trades you make. Also the cost of a powerful computer needed to run the software can put profitable Forex trading out of the reach of small investors new to the market.

Webtraders Changes Everything

To help alleviate these concerns, a new program called Webtraders was developed that doesn’t require a massive computer to operate. Instead of forcing you to download and install a customized program, Webtraders instead runs on hosted servers on the internet. This means that all you have to do to use the program is login to your account and start trading. By placing all the burden of running the program on these hosted systems, you can connect with a very basic PC and have all the functionality you need to trade.

Online All the Time

Another advantage that Webtraders has over a conventional PC is that it’s running and connected to the internet around the clock. Unlike most computers that are offline when you’re sleeping or away from home, the Webtraders systems are always ready to trade. This allows you to make your investments at the most profitable time in the market to capture the biggest gains. These Webtraders platforms are constantly scanning your currency pairs to make sure they handle the trades you want when they become available. This provides you peace of mind in knowing that you’ll never miss that important trade again.

Forex Trading is Finally Mobile

The hosting computers used for Webtraders also make it possible to trade from other devices while traveling. You’ll connect to these systems through a webpage and can trade on virtually any device with an internet connection. This means you can use your favorite tablet or Smartphone to make those critical trades and know that the Webtraders program will execute them precisely on time. You’re also not limited by the power of these mobile devices since all the hard work is being done on the hosting servers for the Webtraders system. By using the Webtraders program you can virtually trade anywhere you can connect to the web. Imagine being able to Forex trade while traveling and still have access to the critical data you need to make the right decisions.

One last thing the Webtraders application does is save you money. By not having to worry about buying a new computer or paying for high-speed internet you’ll have more funds available for investing. Knowing you can make the trades you need to be profitable by simply logging into the site makes Forex trading easier for most investors. They can spend more time trading their currency pairs and less time worrying about problems with their systems.

Trade with iPad and Tablets

With the popularity of the Forex market growing every year, investors are looking for easier ways to keep track of their accounts. While most of them still do the majority of their trading on the computer, the number of traders using iPads and other tablets to trade with are growing rapidly. These portable devices provide the perfect combination of convenience and access that most Forex traders need and allow them to make the trades they need while away from their desks.

Mobile Phones Were the First Wave

Mobile phones started becoming a favorite platform for Forex traders to use to check on their investments when internet access was introduced for these devices a few years ago. Even though these phones gave the investor a somewhat limited view of their account, it was enough to know how their Forex investments were doing. As Smartphones became more popular, application developers began releasing Forex trading programs that could be run on the phone. These early applications were much simpler than the full-featured programs the traders were using at home but gave them some level of functionality. Most traders didn’t use these phones to place new orders but instead kept track of their Forex investments.

Tablets Take Forex Trading To the Next Level

With the advent of larger tablets and iPads, these applications now look almost as good as their computer versions. These newer tablets feature larger, high-resolution screens and fast internet connections anywhere you happen to want to trade. You can take your tablet with you and always stay on top of your Forex account.

In addition to the hardware improvements, the software is much better as well. These tablets have become very powerful and now allow the Forex applications that are being released for them to provide all the functionality you’ll need. Some of the companies that produce computer-based Forex trading software have noticed the improvements with these iPads and tablets and have released versions of their Forex trading programs that are designed specifically to run on these new devices. You can now check on your investments, get advice from your broker and actively trade, all from your tablet with a few taps of the screen. This ease of use allows you to always know how your investments are performing and take advantage of opportunities in the market no matter where you happen to be.

The Perfect Mobile Trading Platform

What makes these newer tablets and iPads a near perfect mobile device is their larger screens and connectivity. Having a screen that allows you to see charts and other important investment tools clearly really makes this mobile device a true trading platform. The high-speed internet connectivity through 3G/4G or Wifi means that you will receive real-time updates and tickers. You can also send emails to your broker, visit a Forex trading forum and instant chat with other Forex traders in real time. All of these features are included on most tablet Forex trading programs and make it very easy for an investor to stay on top of the Forex market and their trades.

Trade Forex with Your Mobile

To be successful in the Forex market you’ll need to find trades that take advantage of small changes in currency pricing and make these trades immediately. While some Forex traders january have the opportunity to sit in front of their computers to make these trades, most people are working or away from their desks when the trades need to be made. A new market of mobile Forex applications has been developed to help you make these trades on the go.

When trading Forex with your mobile you’ll want to be careful you have the information you need to make a profitable trade. Many mobile applications don’t provide the depth of rich detail that your desktop application will and some of the missing information january be critical to your trade. These applications are getting more sophisticated every day and will soon provide very similar information and functionality as their desktop partners but be sure to test them extensively before live trading with them.

Check with your Broker

Many of the larger Forex brokers have also jumped on the mobile bandwagon and now provide portable Forex trading applications for their client’s accounts. With these broker-developed applications you are normally limited to using them with a specific account, which seems to work well for most Forex traders. If you also have stock investments with another broker, you’ll need to use two applications to access all of your investments. While this january seem like extra work, many investors prefer to keep these different accounts separate in their trading activities.

Smarter Phones Make It All Possible

What makes most of these mobile Forex applications possible is the recent advancements in mobile technology. In years past, mobile devices like phones and laptops had very limited access to a fast mobile connection to the internet, which severely limited their ability to make and monitor your trades. Without this high-speed connection these application quickly fell behind on pricing quotes that were needed to make profitable trades. With the introduction of smarter and more powerful phones that could stay connected to the internet almost anywhere in the world, these mobile applications began to flourish. This newer technology allows very sophisticated Forex trading applications to be used on the go that provide immediate pricing and trading information.

MetaTrader 4 Helps

The other factor that makes mobile trading possible today is the standard interface being deployed on the various Forex trading broker’s systems. The MetaTrader 4 interface is now widely used on most Forex broker’s sites and allows for investors to have the same control over their accounts, regardless of the broker they are using. This interface ensures a consistent user experience across all Forex broker sites and allows for other third-party developers to produce generic trading applications that can be used with these brokers.

Should I Trade With A Forex Robot?

Making a profit in the Forex market requires extensive research on a particular currency pair and exact timing on when you place your trades. Because the market is so dynamic, your opportunity to profit from a small movement in the price of a currency really requires you to be online and ready when these opportunities present themselves. This january be hard to do for many casual traders and to help make these trades when you need them several companies have released Forex robots to take the guesswork out of the task.

What to Expect From an Automated Trading Program

While there is a wide variety of Forex robots (or automated trading programs) available, all of them do several basic things to help you trade more efficiently. The most important function they serve is making the actual trade for you without the need for you to be constantly logged onto your account. These trading programs enable you to specify an entry and exit price to have the program make your trades. This is a big advantage since it eliminates the need for you to constantly monitor the Forex market and pick the best time for your trade. By having a program watching a specific currency pair you can be sure to make the right trade at the right time for the biggest profit.

In addition to automating your trades, most Forex robots will also provide some additional guidance for the market. Most of these programs rely on years of historical data to find good trading opportunities for you. In many cases you can enter some simple parameters on the lot and pip size you are hoping for and the Forex trading robot will take care of the rest for you.

In recent years these automated trading programs have become very popular with a segment of Forex traders who swear by their accuracy and efficiency. Unlike manual trades that require time and effort to complete, these trading programs automate everything. Their programming operates on cool logic that eliminates the emotion that most traders placing their own trades succumb to when facing a profit or loss. By specifying exact entry and exit points these trading programs ensure you receive the profits you expect and will never chase a profit or loss in the market as many traders are known to do.

Forex Robots Have Their Challenges

While there are many benefits to using an automated trading program, there are a few downsides as well. One of the biggest dangers is that many brokers prohibit the use of these trading programs and can deactivate your account if they suspect you’re using one. Another issue is that most of the robots are based on a specific style of trading and don’t provide a lot of flexibility. You have to trust the internal logic of the program to choose the right currency pair to trade. Surrendering this level of control over their investments can be a challenge for many investors.
These programs can also be expensive and january also involve an ongoing monthly charge for updating their charts. While this january seem like a small price to pay if you’re making money, it can still impact your overall earnings in the Forex market over time when compared to trading manually.