Online forex trading has been getting more and more popular and has been my preference for trading, however if you are still unsure why you should trade forex as compared to other products like stocks, here are some of my top reasons,
High Available Leverage
Due to the vast availability of liquidity in the forex market, you are able to trade forex with leverage as high as 50:1. The benefit of this is that you are now able to take advantage of even the slightest moves in the market. It is important to note that whilst this can easily magnify your gains, it is a double edged sword and can easily do the same by significantly increasing your losses.
Lowest trading costs
Most forex accounts are made up of low, competitive commissions and super tight spreads. You trade the direct quptes from our liquidity providers with no hidden markups. This makes forex trading costs lower than those of any other markets. Most brokers are compensated for their services through the bid/ask spread.
Trade Long or Short
Unlike other financial markets, where it is usually quite difficult to sell short and you may get more costs or limitations imposed on you, there are no limitations when shorting a currency. This is great, so when you thing a currency is going to go up you just buy and when you think its going down, just sell it, allowing you to make money regardless of the market. Also since currency trading involves buying one currency and selling another, there is no structural bias to the market.
Large funds or institution cannot control the market
In spot trading, the massive size of the forex market makes the likelihood of any fund or institution manipulating a currency very unlikely. All these funds and institutions are more or less the same as other participants in the spot currency market where the liquidity is unprecedented.
The market never sleeps
Trading goes on all around the world during different countries business hours. As a result, you can trade the major currencies at any time 24 hours a day. With this ability to trade the different sessions, you have full flexibility when customizing your trading schedule. But remember this means that something can happen that could affect the market at any time of the day or night.
Being the $5.3 trillion a day market, with most trading concentrated in the major currencies, there are always a lot of people trading it. This makes entering into positions and getting out of them very easy. In fact even at huge trade sizes, the execution is practically instantaneous. As a result of this, the price that is usually shown when you are executing the order is usually the price that you will get.
This has made trading the forex market very attractive to me. And was easily my first choice back in the day when I first start trading and required something that was affordable.