10 REASONS TO START TRADING FOREX!
More and more investors and entrepreneurs are diversifying their investments, including stocks, bonds and commodities with foreign currency, for the following reasons:
1) Forex is the largest financial market in the world.
With a daily volume of more than $ 1.5 billion, instead of the FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, compared with $ 50 billion daily market for the shares or the $ 30 billion over time, it quickly becomes apparent that you have, and millions of foreign exchange traders, almost infinite trading liquidity and flexibility.
2) Forex market is a real 24-hours.
The Forex market never sleeps. Negotiating positions can be entered and exited at any time in the world, around the clock, 5.5 days per week. No waiting for an opening bell as in the case of commercial stocks. This is a 24 – hour, continuous electronic (online) currency never closes. This is very convenient if you want to trade part time, because you can choose whether to trade: morning, noon or evening.
3) There is a bear in the FOREX Market.
You can access a stream for the exchange of currencies. Trade Currency “pairs” (eg U.S. dollars JPY (YEN) and the U.S. dollar against the CHF (Swiss francs), to one side of each pair of currencies (eg USD / CHF) is moving relative to the other. So when you buy a currency, which are both selling the currency in the pair. As the market a value of the coins on the other. Of course, you choose the correct currency to be long (you bought) or short (that sold).
4) Build High – up to 400:1 leverage.
It allows you to currency trading in a highly leveraged – up to 400 times your investment with Fenix Capital Management, LLC and other riders.
Standard 100,000 – U.S. $ currency lots can be traded with as little as 0.25% margin, or $ 250.
Mini FX accounts are permitted to negotiate with only 0.25% margin, ie only $ 25 you can control a 10,000-unit position.
Futures traders, who are accustomed to margin requirements generally equal to 5-7% -8% of the contract value, immediately recognize that the FOREX market provides much greater leverage, and stock traders, who must show the least 50% margin, there is no comparison. If you are looking for an effective use of trade, foreign exchange trading in the market.
5) price movements can be highly predictable.
Currency prices in general, the foreign exchange market is repeated in relatively predictable cycles, creating trends. The strong tendency for currencies develop are a significant advantage for operators who use the “technical” methods and strategies.
Unlike stocks, currencies tend to develop trends. Over 80% of volume is speculative in nature and, accordingly, the market and often exceeds their own fixes. Technically trained trader, you can easily identify new trends and buttons to enter and exit positions.
6) You do not pay commissions or fees to exchange currency
When you trade in currencies, through Fenix Capital Management LLC (FCM), can do so completely free of commissions and fees, regardless of the size of your account.
Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only U.S. $ 200 and does not charge commissions or fees to trade or to maintain an account, regardless of their account balance or volume.
7) You do not have to pay fees or costs change.
There are the usual fees, the operators and equity futures are used to pay:
Non-settlement of rates of change or
NO NFA or SEC fees.
Since the currencies in trade-the-counter (OTC) through a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions in their profession without having to worry or account for the month of May as the cost of their profit / loss or slippage.
On equity and commodity markets, you must pay a commission and exchange rates. The OTC market structure eliminates currency exchange and taxes, which in turn reduces transaction costs.
8) How to make money in Forex brokers charge no commissions if?
Like all financial products trading OTC foreign exchange involves a bid / ask spread, which represents the price of its counterpart is willing to trade. Your agent will receive a portion of the bid / ask spread.
Because the market is always in cash, you receive tight, competitive spreads both in day and night. Stock traders may be more vulnerable to liquidity risk and more comprehensive range in general, especially during after hours trading.
9) market transparency.
Market transparency is highly desirable in any environment. The increased transparency of the market, the more efficient the market becomes. Unlike other markets where transparency is compromised (as in the many recent scandals), the currency markets are highly transparent (ie, analyzing countries, and access real-time news and research, is easier than the analysis of companies).
Due to this transparency, as an FX trader, you will be able to implement risk management strategies based on fundamental and technical indicators.
10) Order immediate execution
The currency market offers the highest level of market transparency in all financial markets. Therefore, in order to complete the confirmation and implementation usually occur in only 1.2 seconds.
In Forex, the execution of orders is fully electronic and trade because you are using an Internet-based platform, instantaneous execution is routine.
There are no exchanges, no traditional open outcry pits, no floor brokers, and consequently there is no delay. (To be continued)