Why Trade in Forex? – List of 10 Reasons why you must Trade in Forex
Know everything about Why Trade Forex in India?
There are thousands of business that you could start right away, but why only forex trading?
Of course, other businesses have their own advantages too, but Currency trading gives you several reasons altogether.
Forex trading is better than stock and commodity trading, why? Because it’s easy and if you pick up your strategy, you can become successful soon, by success it means in terms of money too.
For the record, Forex market is world’s largest pool where millions of transactions happen every day and all of them are mostly liquid. Opting for liquid trading, could be the best if you want to avoid losses.
Why Trade Forex in India?
However, it might seem a little skeptical and risky in the initial stage, but don’t worry if you think forex trading can make you successful, then you have chose it right!
We have mentioned more such advantages that certainly prove why trade in forex?
- Forex trading is volatile
- 24/7 availability
- CFDs and leverages
- Practice Account
- No domination or monopoly
- No commissions
- Low bare minimum
- Forex is the easiest
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Forex Trading is Volatile – Benefits of Forex Trading
How do you think traders make good money online?
Because, the trading market is volatile in nature, which means you buy an asset or a currency for a reasonable price, and sell it when the market is in demand, hence the profit.
The more the volatile market, the high the opportunities will be.
Of course, if you see the market is not much moving, then you need to hold on to the assets you have purchased until the position reaches no profit no loss or the gains.
There are many trading broker platforms that has handy volatile instruments, and charts to help the beginners too.
Liquidity – Reason to Trade in Forex
The forex market is liquid, which means you will never run out of buyers or sellers that are looking to make the trade.
You might not believe, but every day over $5 trillions of currency is bought, sold and/or converted by the individual traders, banks and many top companies from all over the globe.
As mentioned earlier, the majority of such activity is focused to generate good amount of profit.
When there is high liquidity in the market, it becomes easy and convenient for the transactions to get completed quickly with regards to costs, and spreads, as they are quite low.
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24/7 Availability – Reason 3 of Why Trade in Forex
The foreign exchange market is quite open for 24 hours and absolutely five days a week.
If you ask, the forex trading market will be available on weekends, then no, the market closes on Friday by 10 pm and opens directly on Monday morning or Sunday evening at the earliest, which also depends on the region of the currency.
There are these timings because the forex transactions are done between different parties through over the counter trading.
However, you can always take advantage of various active sessions during the currency trading hours, because it’s a worldwide market.
CFDs and Leverages – Advantages of Forex Trading
When it comes to forex trading, you have an incredible advantage of using CFDs which is easier to make your money go a lot further.
Leverage in forex exchange easily allows you to get going with the open position in the currency market which can be accessed by paying a small amount up front to the full value.
This also means that when you trade within the margin, your position is more likely to make profits more than your investments.
Of course, there can be risks and losses, but if you consider CFDs with low leverages then you can avoid losses easily.
You can manage your risks using the risk-management tools that include features like price alerts, stop losses, and guaranteed stops.
Technology – Major reason of Why Trade Forex
Indeed, you know it already! Software and technology does make our lives convenient and easy, and that efficiently applies to online trading too.
The market is filled with tons of forex trading brokers and platforms, while many of them are established and regulated by SEBI.
Most of these platforms are technologically advanced and does give the advantage of trading in the lucrative market too.
The software enhanced trading platforms do supply good level of instruments and easy interface that even the beginners will understand in one go, as you also get different plugins and add-ons to trade online.
Check out Top Rated Forex Brokers available in India
Practice Account or Demo Account
Practice is essential when it comes to online trading, especially if you are a beginner.
When you sign up for a live account with any forex trading broker platform, you also get a demo account that has virtual balance that lets you practice conveniently.
The traders can also trade without having to worry about their capital, as virtual balance in the demo account works exactly like the live account with the live market.
With this benefit, you can also input your strategies and methods in the demo account as it also helps you to learn different charts and tactics.
Once you become hands-on with the forex trading, you can switch to virtual account and then start earning on your margins.
No Domination or Monopoly
Well, business in other industries and sectors can often lead to monopoly during critical economy or political times, but the only sector that isn’t controlled by any entity or individual is the share market or forex trading.
If you ask why, then it’s because the forex trading does not only involve a single country or a region, but it has almost all the countries involved and transacting on a day to day basis.
Hence, nothing can corner the currency trading market because it is sufficiently liquid and active.
Not only banks and companies trade in forex, but also individuals from every sector and category trade in forex.
Hence, you need not worry about the “take control” part, as it’s taken care of by everyone from every corner of the world.
No Commissions – Pros of Forex Trading
Yes, this is an absolute benefit that a beginner or the first time investor could get.
As you know the market has a good level of different forex trading broker platforms and most of them do not charge commission on the profits earned.
These platforms also allow you to transfer your margin money or the profits earned to your deposit source account immediately.
The best example of such an advantage is IQ option and Olymp Trade. Both these brokers have got their own profitable agendas that suit every type of trader.
Also remember that any forex trading platform that charges commission could be a scam, and hence you need to check with SEBI if the broker is officially regulated and established under government.
Low Bare Minimum
If you are thinking that you would require $100 to start a live forex trading account, then you are totally WRONG.
Most of the currency trading account has its own plans and packages for every type of trader, all you have to do is choose the perfect plan that would go with your requirements, budget and your expertise.
Of course, a beginner shall choose a micro or a mini account for the starters and later can move forward to a standard or pro account.
There are broker platforms that do not ask for more than $5 or $10 to start with, and then later you cycle the profits accordingly.
Certainly, this means, no money is going from your own pocket, even if you lose an order, it is a loss from the profits that you have additionally earned.
If you do not have a good capital amount, it is recommended that you start with minimum.
Forex is the easiest
Last but not the least, Forex trading is the easiest to learn and makes you financially independent. Of course, you need to be more passionate and sincere when it comes to currency trading.
Also there are certain thumb rules that you need to keep in mind, such as, daily trading will lead you nowhere!
You have to input certain practices and choose a strategy for yourself before you start with forex trading. Making money with forex trading is easy, and learning forex is easy and quick too.
Don’t be concerned if you are a beginner, or just starting out, if you learn the basics and keep some easy strategies in mind, then you can start earning profits from day one itself.
If you want practical knowledge, you can always make use of demo account with virtual balance.
Bottom Line – Why Trade Forex?
Forex is great and easy! If you know how, then you are financially free!
But, before you start, you have to have a good assistance and supervision to guide you through the trading part, as in before you enter the live account.
Never let money drive you towards forex trading. Agreed, money is huge, but passion can make you successful.
There are many insights we provide that are compiled with currency trading guides and strategies, check them out and start it out!
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