Forex Market Advantage List for Beginners

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If you’re planning to invest, you have to choose a market to trade in. And most of the time, people will tell you two kinds of markets: the stock and forex market. These two are the most popular markets among traders.

the word "forex"on top of a pile of dollar bills


Now, when trying to pick the best, you have to know the specific benefits you can get from each. Both of them can be very rewarding and profitable. A lot have become rich in the stock market. The forex market, meanwhile, has also made a lot of investors well off.

This article tells you why you should choose the forex market over the stock market. Basically we’ll tell you the advantages you can take from it. Add this to diversify your portfolio now! Let’s dig into the reasons.

Forex Market Advantage 1: 24-Hour Market

Unlike the stock market, the forex market is a seamless 24-hour market. A huge slice of the total number of brokers is open from Sunday at 4 PM Eastern Standard Time (EST) until Friday at 4 PM EST. Meanwhile, the customer service is also available 24 hours, all days of the week.

This means that you can customize your own trading schedule because of the ability to trade during the Asian, US, and European market hours.

Forex Market Advantage 2: Low to No Commissions

A multitude of forex brokers charge no commissions or any other transaction fees to trade currencies either online or over the phone.

When compared to any other markets’ commissions, fees, and charges, the forex market has the lowest expenses. This, along with tight, consistent, and fully transparent spread, makes the forex market an easy pick for those who don’t have much to spare for expenses and fees.

The brokers, meanwhile, get their compensation for their services through the bid-ask spread.

Forex Market Advantage 3:  Quick Execution of Market Orders

Your trade can be speedily executed during normal market conditions, under which the price shown when you execute your market order is exactly the price you get. In other words, you’re able to execute directly off the real-time streaming prices.

Remember that many brokers in the forex market only guarantee stop, limit, and entry orders under normal market conditions. That means that if huge events, like catastrophic ones, are taking place, the term “normal market conditions” may not apply.

Forex Market Advantage 4: You can freely Short Sell

In the equity market, there are some restrictions on short selling. It’s quite the opposite for the currency markets. You can free go short on a currency.

When going short, you are basically betting that an asset is going to decrease in value. When you trade currencies, you are practically going long on one currency while goings shot on another at the same time.

This means that in the currency market, trading opportunities exist regardless of whether the trade goes long or short. This also means that you all the time have equal access to trade in a rising or falling market. You can ride out a stormy market with some gains.

Conclusion

Remember that the forex market, for all these advantages we have been telling you, still has its own shortcomings. There are still some risks in trading on the forex market. So it is also advisable to check out the benefits of other markets like stock, commodities, real estate, futures,options, CFDs and many other markets.



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