Forex trading is a very exciting activity that requires an individual to have a mix of discipline and analysis. With the right knowledge and ability to read charts or financial reports, there are plenty of opportunities to make a profit on buying and selling currency pairs. Let’s take a look at a few reasons why the forex market is so popular:
Eliminates the middleman
Most individuals using the Forex market have the option to trade directly without the needed to rely on a middleman to broker the transactions. All pricing for the currency pairs is determined by the market responsible which significantly helps to speed up the trading activity.
Forex trading doesn't rely on brokerage fees, exchange fees or cleaning fees. Most of the brokers involved in the Forex market earn a commision thought the bid/ask spread amount. Under normal trading conditions, the bid/ask spread amount is often less than 0.1%. However. The high volume traders, this can be lowered to a rate of about 0.07%.
The Forex market is open and available to trade at any time of the day or night. This is certain to appeal to the part-time traders that have limited free time. Whether is it morning, midday. Nighttime, it's possible to place a trade with other active traders elsewhere in the world.
Low entry barriers
Traders in the Forex market have the option to get started with a very small trading account which can be as small as $20/25. This is completely different to the…