While there is a lot of content on the web that explains how to trade currencies, install the platform and choose a broker, many people actually fail to understand why it is a great market. Successful people always start with a “why” and this is the reason this article is written. We are going to take a look at the three reasons why Forex might be the best market to trade. Let’s dive in.
Buying and Selling
If you have heard of financial trading before, you most probably know that other instruments are pretty hard to sell short. In the recent movie, “The Big Short” a main character actually has to approach each of the counterparties separately to request them to offer to accept his bet against the market. That’s right, it is extremely complicated to sell an asset without actually owning it. Not with Forex though. This market is much different from the stock market, main differences of FX vs stocks are explained here. In FX market it’s possible to benefit whenever the market goes up, but also when it goes down too.
Due to the leverage Forex traders generate quite some reasonable volumes. This has led to a significant profit achieved by the brokers. In return, many of those have vastly invested in the trading technology. For this reason we can see that currency market can demonstrate the largest degree of the technological advancement.
In the current days there is a great amount of the regular desktop platforms, mobile trading apps, web trading terminals and even mac compatible Forex software. Next to this, there are lots of Expert Advisors for MetaTrader 4 that can automate your trading strategy.
Wide variety of brokers
Unlike futures, stocks, options or other markets, with FX trading there is a lot to choose from. You have more than 500 words operating on the market. Not every single one is legitimate or even regulated, but you can certainly choose an Forex online broker that ticks every box of your preferences.
As the competition on the market is quite high, the trading-related expenses (commissions, spreads, deposit and withdrawals fees) have decreased dramatically over the course of the last few years.
Summing it up
Financial trading is a great activity as it makes your money work for you. However, you have to be careful when deciding on the market. When choosing Forex, you can be certain that you are getting a good deal as this is the market that gives you more possibilities. The main advantage is that you can earn whenever you can predict the move of the market, even if you expect the market to go down. In addition to this, FX simply provides you with the best possible software that can run on any device and any operating system. Finally, trading Forex is considerably cheaper and more efficient than any other instrument.