Why do people choose forex over other financial markets?
Why is forex the fastest growing market being traded? There are many advantages of trading forex.
- Many like the lower costs of trading.
- Some like the flexibility of the 24-hour market.
- The low cost of entry is attractive to many.
- The high leverage the broker gives means you can trade large amounts with little money. This is a double-edged sword, so be careful with this one.
- Because of the size of the market, it cannot be controlled by a single entity. Although it is manipulated often by many institutions and brokers.
- No fixed lot sizes means that the trade size can be as little or as much as one wants.
- There is lots of free and low-priced information on the internet on how to trade forex.
- Unlike stocks, there is no uptick rule.
- The software is free and one can start with a demo account to practice.
The reason more are not trading it is because it is too exotic compared to stock or bonds or other markets people are more familiar with. Although forex has been around since the beginning of time, access to it for anyone with an internet connection is a fairly new concept–only a couple of decades.
Get all the infographics here: Infographical Forex