7 Reasons to Trade Forex


forexTrading forex is the answer to many needs to increase market exposure and beat the environment of zero interest rates. It is so popular that it has become the biggest financial marketplace around the globe. The forex market, which was once governed by major investment firms and banks, is now accessible to everyday investors. Here are 7 reasons why investors prefer forex.

  1. The forex market is available around the clock. Somewhere in the world, the market is open and ready for business at any given time. If you’re trading from home, it really doesn’t matter what time it is in Tokyo or London. Through the internet, you have access to markets that are open 24/7.
  2. The forex markets like to stay active. They are volatile and changes are not always predictable. For intraday trades, that volatility between different currencies can be used to result in nice profits. When compared to regular liquid stocks, the volatility usually falls between 60 and 100. Compare that to forex trading, which is about 500. That makes room for high profits from any level of trader.
  3. Forex trading tends to be transparent. This takes a lot of the surprise element out of making trades. In short, what you see is what you get. There aren’t hidden surprises if you’re careful to watch the news around the world and analyze the charts.
  4. There is a huge potential to make high profits in forex. And unlike other markets, profits don’t necessarily happen only when the market is rising. Take the stock market, for instance, where you keep your eyes glued to the board for the prices to rise. In forex, you can also earn big in when currency pairs go down. Since trades are based on two sets of currency and not only one, one of those pairs could be going up while the other is going down and you can still make money. By watching the charts and planning your moves, you can profit in either direction with forex.
  5. You don’t need to be super wealthy to begin working in the forex market. You can leverage what you have with a minimum of 100:1 and still be able to play the game. This opens up the field to any trader who wants to learn and earn.
  6. The market is outrageously big all around the world. There has never been anything like it in the international market. It is estimated that the amount of money traded in forex on a daily basis is somewhere between two to five trillion dollars. It is a huge draw to investors who want the excitement of being in something that is really big and can profit them with wild amounts of money.
  7. The foreign currency market cannot be influenced by large banks or financial institutions. It’s a level playing field for everyone, from the smallest individual trader to the largest financial organization. Due to its overall size, everyone trading in forex is equally important.

Join our newsletter


Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit
About the author

Join our newsletter

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit

ModestMoney.com Top Finance Blogs


SSCP   CAS-002   9L0-066   350-050   642-999   220-801   74-678   642-732   400-051   ICGB   c2010-652   70-413   101-400   220-902   350-080   210-260   70-246   1Z0-144   3002   AWS-SYSOPS   70-347   PEGACPBA71V1   220-901   70-534   LX0-104   070-461   HP0-S42   1Z0-061   000-105   70-486   70-177   N10-006   500-260   640-692   70-980   CISM   VCP550   70-532   200-101   000-080   PR000041   2V0-621   70-411   352-001   70-480   70-461   ICBB   000-089   70-410   350-029   1Z0-060   2V0-620   210-065   70-463   70-483   CRISC   MB6-703   1z0-808   220-802   ITILFND   1Z0-804   LX0-103   MB2-704   210-060   101   200-310   640-911   200-120   EX300   300-209   1Z0-803   350-001   400-201   9L0-012   70-488   JN0-102   640-916   70-270   100-101   MB5-705   JK0-022   350-060   300-320   1z0-434   350-018   400-101   350-030   000-106   ADM-201   300-135   300-208   EX200   PMP   NSE4   1Z0-051   c2010-657   C_TFIN52_66   300-115   70-417   9A0-385   70-243   300-075   70-487   NS0-157   MB2-707   70-533   CAP   OG0-093   M70-101   300-070   102-400   JN0-360   SY0-401   000-017   300-206   CCA-500   70-412   2V0-621D   70-178   810-403   70-462   OG0-091   1V0-601   200-355   000-104   700-501   70-346   CISSP   300-101   1Y0-201   200-125  , 200-125  , 100-105  , 100-105  , 1Z0-803  , 400-051   EX300  , CISM   100-105  , 000-106   400-201   642-732   220-902   70-410  , MB6-703   810-403   70-243  , CAS-002  , AWS-SYSOPS   70-462   70-410   2V0-621   LX0-103   70-461  , 220-902   1Z0-144   70-178   70-270   350-080  , 1Y0-201   1z0-808  , NSE4   102-400  , ADM-201   SSCP  , 200-125  , 640-911   000-104   640-692   300-320   350-060   000-089  , 000-017   1z0-808   700-501   1Z0-051  , 70-177   M70-101   300-209   70-461   3002   N10-006   VCP550   70-487   300-320  , 3002   700-501   NS0-157  , 1V0-601   CAS-002