The Forex, by its accessibility and its operational particularities, offers numerous advantages compared to the other financial and stock markets. It is thanks to these advantages that the foreign exchange market attracts more new investors every day who wish to profit simply but rapidly without having even to leave home. Here therefore is a summary of the main advantages of the Forex for individual traders.
- Minimized brokerage costs
The investors on the Forex have to pay only low fees and commissions for their participation. Contrary to the stock markets there is no ownership, purchase or sales costs, holding account, government taxes… The only costs involved are linked to spreads (the difference between the sale price and the purchase price).
To further limit the costs of your investments on the Forex, you can compare these spreads that differ from one broker to the next. To help you in this you can, for example, consult our comparison of online brokers which gives you precise indications of the spreads practised on the major currency pairs.
- An easily accessible market
To trade on the Forex, you don’t need to travel. Through the bias of the internet you can trade directly by subscribing to the trading platforms available for free through the online brokers. Passing through the trading platforms online has the advantage of reducing the transaction costs as here there is no real intermediary. You simply act directly on the market using the platform that completes operations for you. These platforms also have an important advantage for small investors, it is possible to open ‘mini accounts’. These platforms in fact allow you to start trading from only $100 and therefore to learn (for the beginners) without taking too much of a risk or allow you to invest with only a small sum.
Also, these trading platforms that we find online are generally conceived to enable traders, even beginners, to easily pass orders online without any particular previous technical knowledge.
- A sure and available market
The foreign exchange market represents more than 3,600 billion Dollars per day, which makes it the biggest market in the world. Another point, the volume of transactions increases every year. the possibilities of fraud are just about nonexistent which makes it very secure, despite its accessibility through the internet. This market is open on a continuous basis and experiences no down time which implies that one can react very quickly to news or an event, whatever it may be, which is not the case for other markets such as the stock markets for example which follows strict opening hours.
- A very reactive market
Finally, and extra to the advantages cited above, the Forex is a market that reacts in a strong manner to numerous indicators both technical and psychological. Therefore the news influencing the currencies is numerous and easy to find.