Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Focus 3 Unique Advantages of Forex Trading

3 Unique Advantages of Forex Trading

The world of Forex trading is gaining an audience all over the world, and for good reason. Among the dozens of reasons for the growing popularity of Forex trading are the sector's high liquidity, ease of entry and brief learning curve.

Anyone with a desire to trade, and a few dollars to risk, can get on board via any of the major platforms. Newcomers, intermediate and professional traders all have their personal reasons for being enthusiastic about Forex. The following are some of the most commonly mentioned reasons that people gravitate toward Forex trading.

Liquidity

Forex is the world's most popular trading market, which is one reason for the super-high liquidity. Whenever you are ready to buy or sell, there is someone else ready to act as the other side of your transaction. Billions of Forex transactions take place every day, so it's not surprising that no other market has higher liquidity levels, even extremely busy sectors like options and futures. Forex traders have many things to think about as they prepare to make a trade.

However, there is never a reason to worry about liquidity. Anyone who has traded stocks or bonds online knows how frustrating it can be to have all your trade data loaded and ready to execute only to find that no one is interested in your particular bid or ask price and volume. Many great deals are lost by competent traders due to nothing more than low liquidity. For Forex enthusiasts, there's always a buyer if you are selling, and a seller if you are buying.

Flexibility and Ease of Entry

Many former traditionalists, who traded stocks and bonds exclusively, were won over to Forex by a combination of flexibility and easy entry into the market. Unlike so many other forms of trading, Forex allows new users to join in on the action for staggeringly low sums. The majority of platforms have either no minimums or very low ones, compared to their stock-and-bond counterparts.

And because Forex markets never really close, traders have the ability to work virtually any time of the day or night. This 24/7 access is just one of the reasons that a large number of people trade Forex as a part-time job; you can literally work a 9-to5 job as a nurse, teacher or whatever, and ply your Forex skills for a few hours each evening after dinner.

Short Learning Curve

It does not take long to learn the ins and outs of Forex trading, either. Every one of the major platforms, and almost all the smaller ones, offer free online tutorials in the form of videos and PDF booklets that explain everything a newcomer needs to know to trade proficiently. The best part of the larger platforms are the educational features.

Anyone who desires can "paper-trade" before putting real money on the line. The simulators are highly sophisticated platforms-within-platforms that let learners acquire real-life trading skills. It's just one way to build confidence and expertise before entering the actual trading platform.

Document Actions
EU Alerts

EUbusiness Week no. 848
Protecting our 5G future
→ EUbusiness Week archive

The Week Ahead no. 443
Situation in Iran - future of the CAP - sugar sector - EU-Canada summit - Commission President vote

Subscription options