Forex, or foreign exchange, is currently the largest and most liquid trading market worldwide. Although Forex first began accepting retail clients during the late 1990s, it has been functioning for decades earlier, but was previously exclusive to institutional clients. Currently, trillions of dollars per day are traded on the Forex markets and retail clients contribute to around 5% of the volume, equating to around $250b of turnover on a daily basis.
So, why is the Forex market so large? With hedge funds, multinational trade companies, financial institutions, and many more companies requiring foreign currencies to operate, currency trading is essential. Here are some of the reasons why Forex is the best market to trade online.
#1. Accessibility:
The fact that the Forex market is more accessible than any other online trading market is just one of the reasons why it has grown in popularity. Unlike trading in stocks and shares, you can get started trading Forex with as little as $100, or in some cases, even less. Another factor which makes it very appealing to new traders is that the Forex market can easily be accessed online using a reputable trading platform such as CMTrading; you can get started with just a computer and an internet connection and make trades from the comfort of your home or even on the go. Some trading platforms even offer a mobile application, creating more accessibility than ever before.
#2. Volatility:
For many traders, the reason that Forex is number one is the high volatility of the market. The more volatile a market, the more opportunities you will have to acquire and sell on assets. Volatility levels in the Forex market are exceptionally high; you can easily expect to see a price move for about 50-100 pips on any major currency pairs at any time. Since any experienced trader will always look for volatile markets and instruments, it’s no surprise that this is one of the main benefits of trading Forex.
#3. Technological Advancements:
There’s no denying that technology and software advancements tend to make our lives easier, and the same is certainly true when it comes to Forex trading. With the market growing in popularity, there are numerous new trading platforms being set up each year, and even more updates for reputable trading software programs. In comparison with many other online trading markets, Forex is easily the most advanced when it comes to trading tools, add-ons and plugins for the most popular platforms.
#4. Growth and Opportunities:
Last but not least, the potential for growth is definitely an alluring feature of trading on the Forex market. Forex is suitable for almost anybody, whether you’re hoping to earn some extra money in your spare time or are looking for an autonomous career that you can execute from home. With the right amount of time and dedication, it’s totally possible to change your life trading Forex.
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