Forex Trading - 5 Advantages of Forex Over Other Investments

Forex trading is becoming more and more popular with more and more private investors trading Forex at home. Why investing in Forex instead of stocks, options, or commodities for example?

Here are the main reasons that make Forex trading a favorite market to invest for traders all over the world:

1/ 24 hours a day market place
As opposed to the futures for example, where the market is open a few hours a day, the Forex market is open 24/5 and makes it easy for the private investor to start trading during his free time.

2/ No commissions
Trading forex is much less expansive than other investments. Generally, there is no commission. Online brokers make money on the spread (i.e the difference between the sell and the buy price of a currency pair). This spread is generally low and varies from 1 to 5 pips, depending on the brokers and the conditions of the market. There is also a form a Forex streading, the Forex spread betting, that is not subject to tax in some countries like UK.

3/ High liquidity
Forex is the largest trade market in the world. There is always a buyer and a seller for any pair of currencies. The trader can take a position whenever he wants at any time. There is no equivalent market or investment where you have such a flexibility.

4/ Profit on bulls and bears
Due to the nature of Forex, chances to make money are equal if the market is rising or falling. Trades are always done with a pair of currencies: if a trader anticipates a fall of the first currency of the pair, he can always buy the second currency against the first one. The opposite mecanism applies if the trader anticpates a raise of a currency against another one. It is not the case for other markets where it is profitable only when the market is raising.

5/ Free resources for Forex trading
There are a lot of free resources on the net(articles, videos, news,...). It makes it easy for a beginner to start by himself just self-studying and practicing at home.

There are of course other reasons to explain the increase of interest for the Forex, but the most important is to keep in mind that the Forex has its own specificities and a trader has to know and use them to take advantage of it.

Eric Leblanc - More information for Forex traders at http://www.goforexeasy.com