Forex trading markets have much to offer, over and above the other traditional markets like equity markets or debt markets. There are many advantages of forex trading online, hence, it’s not a surprise to seem forex markets become the individual center of attention for most investors and traders around the world. Different forex trading advantages are the reason why the volumes in Forex are far above and beyond any other exchange.
The prime focus of this article is to go over the various advantages of online forex trading, which are listed below:
24 Hour Market
Being a 24 hour market, is one of the first main advantages of forex trading online. Open from Sunday afternoon EST to Friday afternoon EST. In FX markets, investors and traders have complete freedom to decide their won trading times. The forex market is always open and connected electronically all the five days.
Being a direct OTC market is another of the forex trading advantages. Involving no commission, the trading takes place directly with the market makers and involves no commission. With the retail transaction costing is less than .01%, there are very low transaction coasts involved.
Other benefits of forex trading includes the Forex market being connected through a network of dealers or major commercial banks. Dealing only through electronic networks and telephones, the forex has no organized exchange such as the NYSE or the LME.
Liquidity is seen upon as one of the biggest resources for traders and is perhaps one of the biggest advantages of online forex trading. With trading value crossing over $4 trillions a day, you won’t find such liquidity in any other financial markets.
Leverage or Margin is another of the main advantages of online forex trading. It allows a trader to trade in much larger volumes. Forex brokers, such as Juno markets opinions, are seen providing a great amount of margin to traders and of leverage is common.
Although the market makers, like commercial banks, etc., are monitored via the relevant rules and regulations placed for them, the forex market is basically not regulated. This is another of the advantages of forex trading online.
Not easy to manipulate
As the Forex markets absorb huge sums of money, it would be rather difficult for any trader, operator or market maker to influence or control the market for a continued period of time.
Other benefits of forex trading include that there is always a prospect for bulls to stay active in the market as when traders shorts on one currency, he or she is buying or ‘long’ trading another.
Current forex news and information related to currencies is easily accessible for investors while trading through various online as well as offline sources. This is another of the many forex trading advantages.