Several factors are worth mentioning that prove why trading currency in the Foreign Exchange Market is more advantageous than other investment vehicles such as trading stocks or futures.
Here are 6 quick reasons why you should move your investment dollars into Forex.
Leverage.
(Also referred to as "margin"). Currency traders enjoy a much higher leverage ratio than typical stock traders - in other words, trading currency requires less capitol to control larger dollar amounts of a security (as much as 100:1 ratio with some forex brokers).
Low cost to Start.
An online currency trading account (sometimes called a "mini" account) may be opened for as little as $100. These are an excellent way to get your feet wet without taking a bath.
Your money Earns Interest in a forex currency trading account. How many stock brokerages can offer that?
Simplicity.
There are approximately 4,000 stocks listed on the NYSE, and another 2,800 on the NASDAQ - which one will you trade? Trading currency involves only the seven major USD currency pairs instead of 7,800 stocks, which simplifies things significantly for the forex trader. Fewer decisions, fewer headaches!
Liquidity.
Forex is a "spot" or cash market where trades rarely exceed two days, and unlike stocks - trades are almost always executed at the time and price asked by the speculator. Many futures traders have had the nightmare experience of being "locked" into an open position long after placing the liquidation order. The high liquidity of the foreign exchange market (approximately three time the trading volume of all other markets combined) which ensures your prompt execution of the order you placed at the price and time you specified.
Predictability.
No other market is quite like the foreign exchange when it comes to the predictability of trends when certain global economic conditions form. Many who are active in trading currency believe the economic indicators are much clearer and provide such a surprisingly consistent outcome on the price direction of certain currency pairs, that they can actually set their accounts on "autopilot" and have robotic software do the trading for them.
This has opened the gateway for many automatic software products to flood the market in just the last two year, but only a few have shown that they can consistently turn a profit of the long term. One such autopilot trading currency software that is becoming more and more popular among active traders can be seen in action here at it's Press Release.
