The financial returns promised for FOREX are very high compared to the trading of stocks, futures or commodities. One of the most prominent advantages associated with this trading is that there are equal chances for success in falling as well as in rising markets. The flexibility of the market is another advantage associated with it.
In stocks or futures trading, the bear and bull condition of the market decides the trading behavior. But in a market, the trader can reap profits independent of the nature of the market. The transaction costs associated with the trading is low compared to other modes of trading. The FOREX market is considered to be the world’s most liquid market where the trading volumes are in trillions. In most scenarios, the slippage of currency value is very limited compared to other trading modes. The profit potential in trading is very high as the FOREX market offers the highest leverage available. The order errors associated with FOREX trading are minimal.
The costs associated with FOREX trading are the minimum as there are no commissions or service charges, only the spread between the cost to buy or sell a currency pair. All trading is done electronically in the FOREX market. This makes trading convenient and relatively error free. This electronic mode of trading is done via sophisticated platforms that are provided free of charge by most forex brokers. Many online tools are also available which makes decision making easy. The historical data can be analyzed using these FOREX trading tools to arrive at an investment decision.
The FOREX market is a global market and hence the risks associated with the manipulation of currency values are very few. The currencies cannot be manipulated easily which reduces the risks associated with this mode of trading. Unlike the stock market, FOREX trading is done in a wide market where manipulation is practically impossible. There are no restrictions on the number or types of transaction in the FOREX market. In FOREX markets, the trader is free to plan any trading strategy and to implement the same. The returns and benefits associated with FOREX trading can very high which drives many people to this mode of trading, but it is important that you study & learn how to trade forex on a free demonstration account before you trade with real money.