Why Trade Online Forex?
The internet is by far the only piece of technology that has been received exceptionally well by the masses. More people have grown into using personal computers for their own personal means and the internet has made the whole process even more convenient and has made many more activities easily accessible. In the past, Forex Trading was a preserve strictly meant for the wealthy. However, the internet and the rise of personal computers has made it even more accessible to all interested individuals regardless of age, financial status or even location. Today, there are several online Forex traders that have made it big by simply sitting at their desks at home and trading Forex online. A very good example is Keith Adams who has grown to be an online Forex trade mogul.
So, why should you trade online Forex? There are a number of reasons why you should consider this. They include:
- 24 Hours of trading
With online Forex trading, there is no such thing as open bells. The Forex market is always open; 24 hours a day! It goes all the way from Monday morning in the Australian market through the afternoon close in the New York market. The freely available market makes it possible for those planning on part-time trading to conveniently participate. It is up to you to choose what time suits you best.
- Eliminates middlemen
Unlike with other trading options, online spot Forex trading does not include the use of middlemen. You are the one to trade currency directly hence you get to be solely responsible for the wellbeing of your transactions.
There are no commissions whatsoever include in online Forex trading. From government fees, exchange fees, brokerage fees to clearing fees; you do not pay for any kind of fee. Retail brokers are on the other hand compensated by the bid-ask spread.
- Cheap costs of transactions
With online currency trading, the retail ask or bid spread is normally 0.1% of lesser during normal conditions of the market. For huge dealers, the spread lies at about 0.7%. However, the leverage still determines just how well the spread will be.
- Low capital
If you are planning to trade online Forex, there is no need to worry much about the initial capital. In order to get a trading account, all you need is some little money to get you going. You can use a capital of as little as $50.
- Extreme liquidity
The online Forex market is quite extensive considering the amount of currency and number of traders involved in the transactions. This therefore means no matter what the deal or time, you will always have someone on the other end willing to trade. A trade can never get stuck. As a matter of fact, the market allows you to set your own limit order as well as stop loss order.
- Highly convenient leverage
Online Forex markets require dismal deposits in order for you to manage to control huge chunks of currencies. The most common leverage in this case is 50:1 which in turn implies that with $50 one can control up to $2,500. This reduces the capital risk as well as increasing chances of gaining profits.