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Rea­sons to Trade Forex

More and more investors are embrac­ing Forex as a way to diver­sify their port­fo­lios and obtain higher returns than typ­i­cally gained from tra­di­tional asset classes. So what is it about increas­ingly pop­u­lar Forex trad­ing that is attract­ing investors to take it up? Here are Eignt rea­sons why you might con­sider try­ing your hand in the world’s largest and most lucra­tive market.

• Forex is The World’s Largest Market

  The For­eign Exchange (Forex) mar­ket is the biggest and most liq­uid of all equi­ties mar­kets to get involved with. This in itself is an advan­tage as with an aver­age daily trade vol­ume of $4 tril­lion a day, no sin­gle per­son or insti­tu­tion (not even Cen­tral Banks!) can cor­ner or con­trol the mar­ket, and you almost always buy or sell a posi­tion at a rea­son­able price, with price exe­cu­tion based on cur­rent inter­bank rates..
  

  Reduce Expo­sure to Risk

  Trad­ing forex is a great way to remove mar­ket risk, as part of a rounded trad­ing strat­egy. Unlike shares trad­ing, a weak­en­ing mar­ket sen­ti­ment in forex can­not cause all cur­rency inter­ac­tions to fall — as one currency’s loss is another currency’s gain. Lever­age One of the big rea­sons that so many investors are attracted to Forex is that it offers much higher lever­age than is avail­able with stock mar­ket investing.

  Real-Time Forex Alerts & Any­time Any­where Access

  Don’t for­get to check out timetotrade’s new forex alerts tool. Use time­to­trade to set up your own cus­tomised price and tech­ni­cal indi­ca­tor alerts against all the major cur­rency pairs. Track real-time changes in the mar­kets and receive forex alerts to your mobile.

• 24-Hour Global Access!

  The forex mar­ket is open con­tin­u­ously 24 hours a day from 5pm Sun­day to 5pm Fri­day. Mean­ing you can trade over dif­fer­ent time zones giv­ing you many oppor­tu­ni­ties to make money and choose the hours that you want to trade… no wait­ing for the bell to ring and the mar­kets to open.

• Min­i­mal Manipulation.

  The for­eign exchange mar­ket gen­er­ates bil­lions in rev­enue for the world’s banks and is a neces­sity of the global mar­kets. Ana­lysts, pun­dits, banks and bro­kers alike don’t drive how the deals flow, they just analyse the forex mar­ket. This makes your invest­ments less sus­cep­ti­ble to being cor­nered by the mar­kets or for cen­tral banks to inter­vene to manip­u­late mar­ket prices, as can be the case with stocks and shares.

• Less Choice.

  There are approx­i­mately 40,000 stocks listed across global exchanges such as the LSE and NASDAQ. For stock mar­ket investors this means that many hours of research must be spent work­ing through which stocks are to be invested in. In Forex trad­ing it is much sim­pler. There are dozens of cur­ren­cies traded, but the major­ity of the mar­ket trades just 4 major cur­rency pairs. So Forex is a lot eas­ier to focus analy­sis on and keep track of changes in the market.

• No Stamp Duty.

  There is no stamp duty to pay on trad­ing forex and spreads are tight. Forex trad­ing is highly trans­par­ent and does not have any hid­den com­mis­sions or exchange fees. Forex bro­kers make a small per­cent­age of the bid/ask spread and that’s it. Most bro­kers offer free trad­ing plat­forms — enabling you to trade from home (or just about any­where else!) 24 hours a day..

• Forex Trends Excep­tion­ally Well

  One of the under­ly­ing tenets of tech­ni­cal analy­sis is that his­tor­i­cal price action pre­dicts future price action. Owed to the large num­ber and vari­ety of for­eign exchange mar­ket par­tic­i­pants, there tends to be a large amount of data to gauge future price activ­ity, mak­ing it the per­fect mar­ket for traders that use tech­ni­cal tools to deter­mine entry and exit points.