2) No middleman

Spot currency trading eliminates the middlemen and enable the trade directly with the market responsible for the pricing on a currency pair.

3) No fixed lot size

Exchanges determined the lot or contract sizes in the futures markets. A standard size of contract for silver futures is 5,000 ounces. Meanwhile in spot forex, lot or position size is determined by yourself. Traders are allow to participate with accounts as small as $50.

4) Low transaction costs

Retail transaction cost or the bid/ask spread can be as low as 0.1% under normal market conditions so the transaction costs is low.

5) 24-hour market

The forex market never sleeps and it is ideal for those who want to trade on a part time basis because you can choose when you want to trade at anytime.

6) Leverage

In forex trading, small deposit can control a way bigger total contract value. Leverage gives the trader ability to earn good profits while keep risk capital to a minimum. However, leverage is a double-edge sword. Without proper risk management, leverage can lead to bigger losses as well.

7) High Liquidity

Forex market is very large and extremely liquidity. This is a very big advantages because it means that trader can instantaneously buy and sell as there will always be someone in the market willing to take the other side of the trade.

8) Low barriers to entry

Online forex brokers offer small trading accounts like “mini” or “micro” which comes with minimum account as low as $25, which makes forex trading much more accessible compare to others.

9) Demo platform

Most online forex brokers offer a demo accounts for new traders to practice trading and build their skills up, along with real time forex news and charting services.