The Forex market is a very attractive trading platform for people all over the world. Someone chose this way for themselves, because Forex works 24 hours a day, someone – because you can work on it without leaving your home, the main thing is to have the Internet, and somebody like the idea of trading currency on the most highly liquid market in the world.
Anyway, the international currency market has a lot of advantages and below we will tell about some of them (we do not list all, for there are a lot of them).
- No commissions for conducting transactions
- No intermediaries
- No fixed lot size
- Round the clock market
- The price is regulated only by the market
- High liquidity
No commissions for conducting transactions
There are no middlemen in the Forex market, as, for example, in the stock market, so traders do not pay additional commissions. In addition, there is no commission on the currency market for clearing, currency conversion, there are no government fees, and other unwanted embezzlement for traders. Most retail brokers receive a monetary reward for their services through the so-called “bid / ask spread”.
Turning to the previous point, we want to separately highlight the fact that traders in the foreign exchange market work independently, without resorting to the help of intermediaries. This allows them to independently control their work and not pay commissions.
No fixed lot size
A significant difference of the forex market is that, unlike futures markets, traders determine the size of lots or contracts independently. If you wanted to trade, for example, silver futures, you would have to reckon with the condition that the standard contract for such an asset is 5000 ounces. In contrast, to enter into transactions on forex you can even with a bill of $25.
Round the clock market
Continuous work of the market is one of the leading conditions that attract traders to this trading floor. The 24-hour chart allows investors to work at any time of the day, combining this occupation with other important matters. It also allows you to immediately respond to changes in the market, as well as monitor the situation as a whole.
Given that the market, although not physically located, is actually tied to the work of banks, so it cannot work constantly. However, there are 4 trading sessions, which somehow overlap each other due to the change of time zones. Therefore, traders anywhere in the world can connect to work at any time of the day.
The price is regulated only by the market
The number of participants and daily transactions on the market exclude the possibility of price regulation by one entity. In some cases, this, of course, is possible, but this event will be very short-lived. In particular, pricing depends on world news and market conditions.
High liquidity stands on a par with the round-the-clock work among the advantages of the forex market, and has a high priority for traders in choosing a trading platform. A huge number of participants guarantees the ability to quickly close deals on convenient terms – is there somewhere else you can do this?