Thread: [FX] Why Trade the FOREX?

Liquidity
The FOREX market is the most liquid financial market in the world around 1.9 trillion dollars traded everyday. The commodities market trades around 440 billion dollars a day, and the US stock market trades around 200 billion dollars a day. This ensures better trade execution and prevents market manipulation. It also ensures easily executable trading.

Trading Times
The FOREX market is open 24 hours a day (except weekends) which means that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to choose the times they want to trade. Commodities trading hours are all over the board depending on which commodity you are trading. Including extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays.

Leverage
Depending on your FOREX account size, your leverage may be 100:1, although there are FOREX brokers that offer leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock market can be as high as 4:1, and in the commodities market, leverage varies with the commodity traded but it can be quite high. Because the commodity markets are not as liquid as the FOREX market, its leverage is inherently riskier. Although I was never shut out of a commodity trade by the day limit, the fear was always in the back of my mind.

Trading costs
Transaction costs in the FOREX market is the difference between the buy and sell price of each currency pair. There are no brokerage fees. For both the stock and the commodity markets, there are transaction costs and brokerage fees. Even when you use discount brokers, those fees add up.

Minimum investment
You can open a FOREX trading account for as little as $300.00. It took $5,000 for me to open my futures trading account.

Focus
85% of all trading transactions are made on 7 major currencies. In the US stock market alone there are 40,000 stocks. There are just over 200 commodity markets, although quite a few are so illiquid that they are not traded except by hedgers. As you can see, the fewer number of instruments allows us to study each one more closely.

Trade execution
In the FOREX market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent.

While all of these features make trading the FOREX market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky.

Thanks for information above again.

Minimum investment
You can open a FOREX trading account for as little as $300.00. It took $5,000 for me to open my futures trading account.

I think this one really hard for me because i don't have that much money to use for forex trading. Seems i need to collect my money first before i'm join forex trading todays.

Originally Posted by titaniumhijau

Minimum investment
You can open a FOREX trading account for as little as $300.00. It took $5,000 for me to open my futures trading account.

I think this one really hard for me because i don't have that much money to use for forex trading. Seems i need to collect my money first before i'm join forex trading todays.

haha..i see you are earning good in many get paid forums. Try to accumulate the money and go in forext trading. It give you better in term of income in future.

Hi,

This article goes through what you need to do to trade on the Forex markets online.
Steps: 1. Research the best ways to invest. Forex is supposedly the biggest market in the world. It’s bigger than the US stock market, because the daily turnover is in the trillions. First understand that you, the retail investor is not going to move the market, the banks trade in multimillions, you won’t be doing so.
2. Consult a trusted broker. You need to trade through a margin broker who will give you 100:1 leverage on your trades.