Advantages of the Forex market

Trading from home: advantages of the Forex market

The Forex market has many advantages and today it is the largest financial market in the world. Million of traders all over the world choose the foreign currency market due to the opportunities it gives. For people who want to work from home, currency trading is the best choice and we are going to explain why.

High liquidity. Forex operates with enormous money funds, therefore, a trader has 24 hours’ opportunity to open or close a position of almost any volume at the current price. Forex daily returns on average amounts to more than 3 trillion US dollars (according to the Bank for International Settlements). And these volumes continue to grow.

Easy to access. Due to electronic trading technologies, almost everyone can trade on the Forex market if he or she has the Internet access. You can make trades easily now: trading from home, a cafe, an airport, a taxi or a hotel is an ordinary thing.

Operate 24 hours a day. In contrast to stock exchanges and commodity exchanges, which close at the end of the day, Forex  is a 24/5 service. Quotes are supplied continuously and you can open and close trades whenever you want. It allows people from from any time zone and with any schedule to earn on Forex. The Asian, European, American and Australian markets open and close one after another. According to these markets we have the Asian, European, American and Pacific trading sessions.

No commissions. In comparison with other markets, there is almost no commission for opening and closing positions on Forex. The exception is a natural market difference between Bid and Ask called spread.

Minimum initial capital. The minimum initial funds to start Forex trading are many times less than a capital required on other exchanges.

Big leverage. Owing to a leverage mechanism, a trader can deal with volumes many times bigger than his or her deposit.

Stability. Currencies are much more liquid products with the persistent demand (as compared to, for example,  stocks). This feature protects the Forex market from a rapid and sudden collapse.

Fairness of prices. Operations with really large amounts (several tens of billion US dollars) can influence prices. So, the price of a particular currency is a result of such operations and shows us the real situations with prices.

Wide range of instruments. Forex offers several tens of currency pairs with their own “character” and volatility. It allows traders selecting the most convenient and easily understood “portfolio”.

We have discussed the advantages of the Forex market and maybe one of the most important one was “easy to access”. Forex allows trading from wherever you want. To learn more about how to do trading from home, use our forex guide.