If you are new to the world of forex trading you might be wondering what exactly is so great about it and why you should trade the forex market. There truly are some significant advantages to trading the forex market over other financial markets which can help you more easily attain your goal of becoming a successful trader.
The forex market enjoys the lowest start-up costs of any financial market in the world. Traders interested in trading forex can get started with as little as $250 in their trading accounts. Beginning with such a small sum of money might seem futile at first, but many forex brokers offer what are known as micro-lots, which essentially allow you to trade position sizes as small as one penny per pip of movement. This means even with only $250 you can open a forex trading account and begin practicing various forex techniques with real money, while still effectively controlling your risk on each trade.
With a trading volume of over $3 trillion a day, the forex market cannot be "cornered" or easily moved by any one market participant. This extremely dense liquidity means that market movement is somewhat less erratic and thus more predictable than what you might find when trading commodity futures or stocks. This is yet another reason why the forex market is a great investing vehicle for both new and experienced traders. This dense liquidity also virtually eliminates the possibility of "slippage" to occur, which is a relatively common occurrence in the futures and stock markets when the price you execute your trade at is not the price you get filled at. Such occurrences are so rare in the forex market that you can almost always get the exact entry price you see on your trading platform.
The forex market is open 24 hours a day 6 days a week, providing for many more profitable trading opportunities to use effective forex techniques on. Many people like forex because of this flexibility, they can open their charts after getting home from work and place a trade, rather than having to be in front of their computer during strict market hours as in stock and commodity trading.
Forex trading allows you to concentrate your analysis efforts on just a few currency pairs instead of being over-loaded by hundreds of stocks or numerous commodities. Forex currency pairs tend to trend very well and often, and as the old adage goes "the trend is your friend", this is never truer than it is in the world of forex trading.
Probably the single best answer to the question, Why trade forex? is that you can do it from anywhere in the world as long as you have a computer and an internet connection. This freedom is the primary reason why most people are originally drawn to trading, and forex provides the most opportunities to profit consistently out of any financial market in the world due to is depth of liquidity and round the clock hours. Open a forex demo account and get started learning various simple forex techniques, this way you can get started trading forex without risking any of your actual money until you are comfortable enough to do so.