Forex is undoubtedly the most thriving financial sector in the world today. The Foreign currency market was established with the sole aim of supporting international business and trade. The growth of international trade and tourism had given rise to a potent earning platform, called Forex.
The present-day world is witnessing a significant trend; more and more traders are joining the fray to seize the fantastic earning opportunities that exists in Forex trading. Forex is often compared to the stock market. However, the earning possibilities associated with the currency market far outweigh the advantages of trading in stocks.
Why Forex trading is better than Stocks trading
1. Invest in Forex from 1 USD
The initial expense to begin a Forex trade is very low, compared to the stock market, where companies often require stock traders to purchase stock of certain value. The minimum value for buying stock is often quite high, hundreds of dollars as an initial investment is usually the norm. On the other hand, you may start your Forex adventure by paying startup costs as low as $1. Many Forex firms allow traders to deal in micro lots with low denominations.
2. Invest in Forex 24 hours a day and 5 days a week
Stock traders have to wait for the opening bell in the morning. Foreign exchange market never sleeps. It’s open 24 hours a day, except for weekends.
3. Invest in Forex with high leverage
The most striking feature of Forex trading is the high leverage it offers to its traders. Nevertheless, we strongly advise that you do not trade with such high leverage and work within responsible risk reward ratios. The leverage offered in stocks is exceptionally low, and pales in comparison to what you get in currency trades.
The leverage in stock trading is approximately 100% lower than what you get in Forex trade. Forex trading provides greater leverage than is found in traditional stock trading, which allows traders to control larger positions with smaller amounts of capital. This also allows you to trade the same size positions you might take with a stock broker, while leaving you with more available capital to trade more markets. Many online Forex brokers offer its customers up to 500:1 leverage.
4. Forex is simple and easy
Another significant aspect of Forex trading is less option and therefore, less confusion. In stocks, you may be scratching your heads to choose from thousands of stocks, and figuring out the best possible option. On the other hand, in currency trading, you can choose to slash down your target, buy a couple of currency pairs, and count your winning bid.
5. Anyone can invest in Forex
Imagine sitting in the confines of your home, and indulging in trading and even walking away with profits. It doesn’t matter, whether you are a full-time office worker, you can still squeeze enough time from your schedule, plug in your notebook and start dealing in currency pairs.
That’s the kind of advantage you get when you deal in spot Foreign Exchange trading. The unique feature of the foreign exchange market is its acceptability. It’s open to all, whether you are a self-employed, or an unemployed youth, the platform invites everyone to its fold to try their hand and hit a winning run.
6. Trade anytime and anywhere
More importantly, you can choose to trade, irrespective of your location. You may be residing in the South or North Pole, alternatively, in some remote region in an uninhabited island. Either way, all you require is an internet connection, a desktop, or a notebook, and you are ready to begin trading Forex.
7. Real time trading and Real time profit
Ever been up on a stock and wished you could leverage that profit and to buy a little more of the stock? In currency trading you can use your profits to trade. Use your realized profits to add to your positions. As you gain experience, you can experiment with pyramid trading strategies. The options are endless.