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 may 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 may 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.
Plus500 is one of the most popular brokers and has an excellent customers service. You can start with only $100 minimum deposit and trade the Forex market, commodities and plenty of indices.
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80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.