An increasing number of effectively knowledgeable investors and entrepreneurs are diversifying their conventional investments like shares, bonds & commodities with overseas currency because of the next causes:
1) FOREX is the most important monetary market on the earth.
With a day-by-day trading quantity of over $1.5 trillion, the spot FOREX market can take up trading sizes that dwarf the capacity of any other market. In reality, when put next to the $50 billion day-by-day market for equities or the $30 billion futures market, it turns into rapidly obvious this provides you, and thousands and thousands of other FOREX traders, virtually infinite trading liquidity and suppleness.
2) FOREX is a True 24-hour market.
The FOREX Market by no means sleeps. Buying and selling positions might be entered and exited at any second across the globe, across the clock, 5.5 days per week. There isn’t a ready for a gap bell as within the case of trading shares. It’s a 24- hour, steady digital (ONLINE) currency trade that by no means closes. That is very fascinating for you if you wish to trade on a part-time foundation, because you possibly can select once you need to trade: morning, midday or evening.
3) There may be by no means a Bear Market in FOREX.
You possibly can have entry to a seamless trade of currencies. Currencies trade in “pairs” (for instance, US greenback vs. JPY (YEN) or US greenback vs. CHF (Swiss franc), one aspect of each currency pair (for instance, USD/CHF) is consistently shifting in relation to the other. Thus, once you purchase a selected currency, you might be really concurrently promoting the other currency in that specific pair. Because the market strikes, one of many currencies will enhance in worth versus the other. After all, it’s as much as you to decide on the right currency to be lengthy ( to procure) or quick( you offered).
4) Excessive Leverage – as much as 400:1 Leverage.
You’re permitted to trade overseas currencies on a extremely leveraged foundation – as much as 400 occasions your funding with Fenix Capital Administration, LLC and with some other brokers.
Normal 100,000- US$ currency tons might be traded with as little as 0.25% margin, or $250.
Mini FX accounts are permitted to trade with simply 0.25% margin, that means, simply $25 means that you can management a ten,000-unit currency place.
Futures traders, who’re accustomed to margin necessities usually equal to 5-7%-8% of the contract worth, will instantly acknowledge that the FOREX market supplies a lot larger leverage, and for inventory traders, who should submit no less than 50% margin, there’s no comparability. Should you’re searching for an environment friendly use of trading , trade the Foreign exchange Market.
5) Worth Actions is likely to be Extremely Predictable.
Foreign money costs within the FX market usually repeat themselves in comparatively predictable cycles, creating traits. The sturdy traits that overseas currencies develop are a big benefit for traders who use the “technical” strategies and techniques.
Not like shares, currencies have the tendency to develop sturdy traits. Over 80% of the quantity is speculative in nature and, because of this, the market regularly overshoots after it corrects itself. As a technically-trained dealer, you possibly can simply establish new traits and breakouts, to enter and exit positions.
Once you trade FOREX, by way of Fenix Capital Administration LLC (FCM) you are able to do it completely FREE of commissions and fees , no matter your account measurement.
Fenix Capital Administration LLC, requires a really low minimum quantity to open a brokerage account, solely US$ 200 and they don’t cost commissions or fees to trade or to take care of an account, no matter your account steadiness or trading quantity.
7) YOU don’t need to pay trading fees or trade fees.
There are not one of the traditional fees, which futures and fairness traders are accustomed to pay:
NO trade or clearing fees,
NO NFA or SEC fees.
As a result of currencies trade over-the-counter (OTC), through a world digital community, in FOREX, what you see in your trading display, is what you get, permitting you to make fast selections in your trades with out having to fret or account for fees that will have an effect on your revenue/loss or slippage.
Within the fairness and commodity markets, you could pay each a fee and trade fees. The over-the-counter construction of the FX market eliminates trade and clearing fees, which in flip lowers transaction prices.
8) HOW to Foreign exchange brokers earn cash in the event that they don’t cost commissions?
Like all traded monetary merchandise, over-the-counter currency trading entails a bid/ask unfold, which represents the costs at which your counterpart is keen to trade. Your dealer will obtain part of this bid/ask unfold.
As a result of the currency market affords round the clock liquidity, you obtain tight, aggressive spreads each intra-day and evening. Inventory traders might be extra susceptible to liquidity danger and sometimes obtain wider trading spreads, particularly throughout after-hours trading.
9) Market Transparency.
Market transparency is extremely desired in any trading setting. The larger the market transparency, the extra environment friendly the market turns into. Not like other markets the place transparency is compromised (like within the many current scandals), FOREX markets are extremely clear (i.e., analyzing international locations, and getting access to real-time analysis / information, is simpler than analyzing firms