Category: Advantages

Self-Directed Learning Curve

While there is an advantage of getting tons of learning tools and materials available at no costs, it also implies a risk. In the stock market, a trader may get professional assistance from portfolio managers, trade advisors, and relationship managers. Contrary to that, Forex traders have to trade on...
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There’s Profit Potential from Rising and Falling Prices

The forex market has no restrictions on directional trading. This means that if you think a currency pair is going to increase in value, you can buy it (or go long), and if you think it is going to decrease in value, you can sell it (or go short). Because currencies trade...
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You Can Use Leverage

Forex brokers often allow traders to buy and sell in the market using significant amounts of leverage, which gives them the ability to trade with higher amounts of money than what is actually in their accounts. If you were to trade at 50:1 leverage, for instance, you could trade $50 for...
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Transaction Costs Are Low

The cost of a transaction is typically built into the price in the forex market in the form of the spread. Forex brokers pocket the spread as their payment for facilitating the trade. Spreads are measured in pips. For most currencies, a pip is the fourth place after the decimal point, or...
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There’s High Liquidity

Liquidity is the ability of an asset to be quickly converted into cash. In the world of forex, the high liquidity means large amounts of money can be moved into and out of currencies with generally small spreads—the differences between the bid prices for potential buyers and the ask prices...
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It’s a 24-Hour Market for Five Days

The forex market is worldwide, so trading is pretty much continuous as long as there’s a market open somewhere in the world. Trading hours start in the U.S. when the first major market opens, in Sydney, Australia, at 5 p.m. Eastern time on Sunday. Trading ends for the week when the last major...
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Risk-free Demo Account

You can make use of a free forex demo account to practice forex trading and learn the ropes. Trading with a demo account is just like the real thing, but you’re doing it with “play money.” A demo account is great for those who want to test the waters or improve...
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Leverage

A small deposit can go a long way. With leverage you can essentially “borrow money” from your broker to trade with in excess of your actual deposited funds. This is a powerful tool and one of the most attractive features of forex trading. Equiti offers up to 1:500 leverage,...
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Low Transaction Costs

As mentioned above, the difference between the bid and ask price is the broker’s spread and this is the retail transaction cost. Highly capitalized brokers can offer very competitive spreads, thus minimizing your trading costs and maximizing your profits. Equiti offers an average spread of 1.5 pips** for its...
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No Commissions on Most Accounts

There are generally no trade commissions, or very low ones for large volume trades. There are also no clearing or exchange fees. Most retail brokers earn their revenue through the “spread,” which is the difference between the bid and ask price. Spreads in the forex market also tend to...
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