If you want to get involved with any kind of financial trading, online forex currency trading is likely to be a better option than stock or commodity trading. Let's see why.
1. Low investment requirement.
Although most of the major traders have accounts worth hundreds of thousands of dollars, you do not need much money to get started. You will trade through a forex broker and many of them now offer mini and even micro forex trading accounts which you can open with just $100 to $200 or sometimes even less. However, it is better to have more than this available, even if you do not put it all into the account in the beginning. Forex is risky and if $100 is all you have, you probably should be putting it somewhere safer.
2. No fees or commissions.
If you have traded stock you will know that your profits can quickly disappear on brokerage, exchange and government fees. Forex is an open, global market where you can avoid most of these. Brokers make money from the spread, the difference between the bid and ask prices of a currency pair.
3. No fixed lot size.
In the forex market you can set your own lot size, at least in theory. While brokers may not always allow you to do this in practice, if you know that you want to trade small amounts you can simply find a broker who will accept small or fractional lots.
4. A 24 hour market, five and a half days a week.
From Sunday night to Friday afternoon, the forex market does not sleep. This means you can trade outside of normal business hours, so it's great for people who have a day job.
5. High leverage.
Forex brokers will allow you to trade up to 200 times your deposit. This means you only need $50 to control $10,000. It's risky, but it means that you have the chance to make a lot of money from a small account balance.
6. Huge liquidity.
The sheer size of the forex market means it cannot be controlled by any one institution. Insider trading is not an issue. Also, you can almost always make a trade, there is no problem being matched. You can even set an automatic forex trading system or robot to make the trades for you.
7. Free information and software.
Brokers are doing all they can to attract more traders and this means that you can get a lot for free. From demo accounts to practice with before you risk any real money, to charts that help you identify emerging trends, it's all available online.
All you need to begin online forex currency trading is a computer with broadband internet. If you want to trade with a robot, you will want a good one so that it makes money for you rather than losing it, but with the amount of competition that there is, even the best forex robots are cheap.
