No brokerage fees:
Unlike the stock market, investors in the forex pay no commissions, no custody, no purchase cost, no selling, no account maintenance fees …
Strong trends:
The forex market is a market trend. It is indeed rare that courses remain for prolonged periods in a range, that is to say, a horizontal channel . The investor can take advantage of opportunities for gains in both rising trend in downward trend.
The benefits to treat:
The forex brokers make available trading platforms for conducting instant transactions or not the foreign exchange market. These are usually available several trading platforms, and even offer the possibility to access their trading account via mobile phone, PDA …
Most Forex brokers allow investors to place orders by phone toll-free place orders by phone, however, is not generally possible for mini accounts. Learn well in these conditions, they may be able to save your setting in case of power internet …
Low transaction costs:
The only transaction fees Forex match the bid-ask spread (difference between selling price and the purchase price). Example with a spread of 3 pips.
Purchase 10,000 1.3553 euros.
10 000 euros 1 = 0000 USD per pip = $ 1 / pip
Transaction costs amounted to 3 pips (the spread), 3 * $ 1 = $ 3 for a position of 10 000 euros.
Purchase of 100 000 euros to 1.3553.
100,000 euros = 10 0000 USD per pip = $ 10 / pips
Transaction costs amounted to 3 pips, 3 * $ 10 = $ 30 to a position of 100 000 euros.
Here are generally the only costs incurred by the Forex brokers.
Many facilities:
Forex allows the use of leverage very simply and without fees unlike the Deferred Settlement Service (SRD) on the equity markets. Forex also allows you to take short positions called “short” on the Forex, or vad equity markets. This possibility of shorting is available for all exchange rates , unlike the stock market where only certain activities are eligible for SRD. Short positions on the currency market do not result in additional costs as opposed to additional market shares. Forex, investors are still buying and selling simultaneously.Imagine a long position on EUR / USD, the investor is long EUR and short dollar .
The largest financial market in the world:
The foreign exchange market is the largest financial market in the world, the most liquid in the world … Over 3,200 billion dollars traded daily on the forex, for comparison, only 25 billion dollars traded daily on the stock markets around the world. In addition, volumes increase every year …
This enormous volume ensures a constant liquidity for spot transactions. The market liquidity will prevent any manipulation. Even central banks can not influence the real exchange rate .
Low volatility:
The foreign exchange market is a market with low volatility, in fact we observe that the average daily variation on the eur / usd generally does not exceed 1%.
Forex is wrongly considered to be a volatile market, but it actually offers a low volatility. A mistake many investors get the idea that this is a highly volatile and dangerous as gains or losses can be very important soon. But the significance of gains and losses is the result of the importance of leverage permitted by the forex brokers. Leverage is solely responsible for this reputation.
Note that each investor chooses the size of its positions and therefore completely control the risk … Themoney management is a critical tool, vital to invest in the markets …
Easily accessible information:
The exchange rates are affected by many variables such as statistics published regularly on the economies (figures on employment, real estate, inflation …), the decisions of states, governors of central banks (the law of the country on interest rates …) …
All this information is easily accessible through brokers, media, internet, print media … and you can be clearly informed about the economic and financial health of states.
A continuous market:
The foreign exchange market is a market that runs continuously from Sunday 11:00 p.m. to 10:00 p.m. Friday. It is therefore possible for each investor to transact 24/24, 5 days out of 7. These times allow private investors did not necessarily time during the day trader can take advantage of opportunities in the evening, night or early morning.
