Discover Why Fx Trading Is So Beneficial

Today, many people are making good profits and taking advantages of Fx trading. This market is ever growing with thousand joining in everyday. It becomes imperative for us to know why trade in Fx is gaining worldwide popularity.

Browse through the following reasons and know the benefits of Fx trading:

a) No commissions, No middlemen

No brokerage fees , no clearing fees, no government fees, no exchange fees makes Fx trading. a very attractive investment opportunity. Another advantage of Fx trading is there being no middlemen. You can trade directly with the market.

b) 24 hour trading

Having an opportunity to trade from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT), 24 hours a day makes it very flexible for the traders. One can take instant decisions anytime for better profits. This is a great advantage of fx trading.

c) Excellent liquidity

Because of the enormity of the Fx Market, it is very liquid. There are always buyers and sellers to trade with just a click of a mouse. This also helps ensure price stability and narrow spreads. This one of the great benefits of Fx trading.

d) Minimum transaction costs.

Depending on your leverage, the transaction cost is typically lower than 0.1 percent or could be as minimum as .07 percent at larger dealers. The transaction costs can vary as per the market conditions.

e) 100:1 Leverage

You can hold a position worth up to 100 times more than your margin deposit with the help of leverage. You can also leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times. But remember that without proper risk management, this high degree of leverage can lead to huge losses as well as gains.

f) “Mini” and “Micro” Trading:

Another advantage of Fx trading is that it doesn’t cost a huge amount of money to start as a currency trader. One can open "mini" and “micro” trading accounts with a minimum account deposit of $300 or even less capital. This is a big opportunity for individual not so high on cash.

g) Free “Demo” Accounts

Free “Demo” Accounts are offered to practice trading and breaking. This is a very good opportunity of hone your skills before opening a live trading account and risking real money.

h) Possible profit in plummeting markets

Whether a currency is appreciating or declining in relation to another currency, there are always trading opportunities. The Fx market is constantly moving and one gets a chance to make a profit.