You Would Think That Getting Started As A Currency Trader Would Cost A Ton Of Money. The Fact Is, When Compared To Trading Stocks, Options Or Futures, It Doesn’t. Online Forex Brokers Offer “Mini” And “Micro” Trading Accounts, Some With A Minimum Account Deposit Of $25.
Commissions Are A Big No-No
No clearing fees, no conversion fees, no administration fees, no brokerage fees. Most retail forex brokers are offset by something called the “margin” for their services.
The Lot Size Is Not Fixed
In the futures markets, the exchanges decide the lot or deal sizes. A typical Silver Futures contract is 5,000 ounces. In spot forex, you decide your amount, or size of your place. It allows traders to be active with accounts as small as $25 (although we will later discuss why a $25 account is a bad idea).
Transaction Costs Are Very Low
Under normal market conditions, retail transaction costs (the bid / ask spread) are usually less than 0.1 per cent. The spread could be as small as 0.07 percent for bigger transactions. This, of course, depends on the power and on all that will be discussed later. Don’t you think now is the perfect time to learn forex trading?
The Market Is A Twenty-Four-Hour Place
There’s no waiting for the bell to ring. The forex market never sleeps from Monday morning opening in Australia until afternoon closing in New York. This is perfect for those who choose to trade part-time, as you can pick when to trade: morning, noon, night, brunch, or sleep.
Cornering The Market For Someone Is Impossible
The foreign exchange market is so large and has so many participants that for an extended period, no single person (not even a central bank or the mighty Chuck Norris itself) can regulate the market price.
The foreign exchange market is so big and has so many players that no single entity can control the market price for an extended period of time. For example, a forex broker may offer a 50-to-1 leverage, meaning a $50 margin deposit will allow a trader to buy or sell currencies worth $2,500. Likewise, one could exchange 25,000 dollars with 500 dollars, and so on. While all of this is gravy, let’s note that the power is a double-edged sword. This high degree of leverage without proper risk management can lead to major losses as well as gains.
Liquidity Is High
It’s also incredibly liquid since the forex market is so big. This is an advantage because it means you can quickly buy and sell at will under normal market conditions with a click of a button because there will normally be someone on the market ready to take the other side of your trade. Since the forex market is so large it is highly liquid as well. It is an advantage because it means that you can quickly buy and sell at will in normal market conditions, with a click of a mouse because there will normally be someone on the market ready to take the other side of your trade.
We’re not saying that you can open an account with the bare minimum, but it does make forex trading much more available to the average person who doesn’t have a lot of start-up trading