Engineer Your Finances

A Systematic Approach To Money

  • About Us
    • Disclosure
    • Privacy Policy
  • Contact Us
  • Toolkit
  • Security
    • Credit & Debt
    • Banking & Saving
    • Psychology
    • Other
    • Optimization
    • Education
  • Self Discipline
  • Improve Returns

Reasons behind forex trading popularity

Share

People have different misconceptions in regards to forex trading. Some think that it is con game. Others think it is a get-rich-quick scheme while others think it is a preserve for people with good connections. Some go into the venture without understanding the basics and the risks involved. Others go into it with fear and grid, which later leads to poor trading habits. Overall, forex trading is real and it is gaining popularity all over the world.

To do away with the misconceptions, you need to talk to real traders that will give you all the inside trading tricks. You also need to have good connections with the best forex brokerage firms that will trade on your behalf for the best positive results. Relying on hearsay will leave you confused and lost which may lead to making bad decisions. One of the questions you need to ask yourself is this, if forex trading is a gamble, why is it so popular?

Why forex trading is popular

There have to be good reasons why the popularity of forex trading is on the rise with people all over the world. Singapore is currently the third largest forex trading country in the world behind USA and Great Britain. This is mainly due to its widely diversified financial centre internationally. The leading trading currencies in SG are the euro, us dollar, Australian dollar, Singapore dollar and the Japanese yen. The reasons for the popularity are:

Liquidity

Liquidity is one of the major reasons for the popularity of forex trading. Global forex trading amounts to over 5 billion US dollars daily that are the highest as compared to other trading markets. Being the most liquid market however does not mean that the industry does not come with its lows and highs. To understand more about liquid and its volatility, your agent can walk you through the chaos and smooth moves in the market.

24/7 trading

Regardless of the day or time, the forex trading market is always open. This allows you to trade at any time of your convenience and from anywhere you deem fit. Why the forex market can stay open 24/7, is because of over the counter (OTC) trading. OTC does not require one central trading location.

Traders use electronic communication networks (ECN) to trade from different locations all around the globe. Trading 24/7 also helps traders to learn the trading strategies even better enabling them to increase their chances of making gains.

Lack of monopoly

Not relying on monopoly is another important factor that makes forex trading popular. Despite the forex market being one of the largest and involving different kinds of entities from all over the world, not a single entity or the central bank can claim to control the market. Decentralisation of forex market trading allows traders to carry out their trades from any part of the world as only market and economic conditions dictate the currency prices.

Lower trading rates

Another factor that makes forex trading an attractive venture is the ability to start trading with low cash investment amounts. Compared to stock trading, which requires large deposits in order to delve into the trading market, FX is very flexible to investors. One of the reasons for this is the large number of brokers in the market that offer very competitive rates to their clients in order to cash in on as much gains as they possibly could.

Leverage is also another factor that makes forex trading easily accessible because anyone can start trading with amounts that are even below $500.

Wrapping it up

The above are some of the benefits that make forex trading a very popular and lucrative venture. However, with all the advantages that come with the trading, you must be very careful about the risks that come with the venture. You can only learn about the risks the market poses by learning from the best firms such as Saxo Singapore. When everything is sad and done, the buck stops with you.

 

 

 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FOLLOW US

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2





Our Favorite Posts

  • How Much Interest Does 1 Million Dollars Earn Per Year? by Trey LaRocca
  • 3-Month Performance Review by Fin Engr
  • Rooting Out The Devil: Kathy Kristof Interview by Fin Engr
  • Money Hackers Carnival #117: Wedding & Marriage Edition by Fin Engr
  • Interview: What’s it all about? More than Money! (Part I) by Fin Engr
  • How to Compare Rates for Mortgage Refinancing by Fin Engr
  • Want To Erase Bad Credit Instantly? 6 Hacks That Work Fast by Trey LaRocca
  • FinEngr Joins The Million Dollar Club by Fin Engr

Blogroll

  • Blonde and Balanced
  • Budget and the Bees
  • Cash Cow Couple
  • Cash the Checks
  • Clever Dude
  • Dinks Finance
  • Enemy of Debt
  • Get Rich Slowly

Categories

Our Friends



Great Investing, Simplified: Get Stock Advisor for Just $99/year!

Need to find a loan? Got a Car? Compare title loan offers near me and get the best rate.

private real estate investors

Order custom essay from professional essay writers.

Visit 123 Term Papers and you’ll receive help from the qualified writers.

Thesis writing help for all the students!


Deprecated: genesis_footer_creds_text is deprecated since version 3.1.0! Use genesis_pre_get_option_footer_text instead. This filter is no longer supported. You can now modify your footer text using the Theme Settings. in /home/engine16/public_html/wp-includes/functions.php on line 5234

Copyright © 2021 · Runway Pro on Genesis Framework