The Advantages Of Trading Forex


There are so many reasons to consider trading Forex over Stocks. Below some of the advantages of trading forex are outlined so that you can see why so many people around the globe opt to trade forex.

Largest financial market in the world

The volume operated in the market exceeds five trillion dollars a day. This is about a third of the annual GDP of the European Union, or in other words, in a period of about three days the Forex market trades the value of the whole European Union’s GDP. Having a large market prevents price manipulation by individual traders and institutions. It also allows for significant liquidity in the transactions, meaning that in normal market conditions you can trade instantly.

All day availability

Currency markets are open 24 hours a day from Monday to Friday. However, the market is more active and offers greater advantages at certain times of the day, coincidentally with the activity of the main financial markets: Tokyo, London and New York. The biggest volumes are traded when the London and New York markets overlap their opening times.

Leverage

A small amount of capital can control a much larger Forex trade volume. This is due to the high leverage in this market. A 100- to-1 leverage for example, means that with a deposit of USD 100 you can control an investment of USD 10,000. High leverage can help gaining large profits in a reduced amount of time, but it can also lead to big loses if things don’t go as planned. Risk management is paramount.

Volatility

There are almost as many currencies to trade as countries in the world. This variety in currencies allows for the possibility of investing around international events, and in all sorts of economies. The price of a currency measures a country’s economic health. They are observed so closely that a country’s currency can change quickly. Attentive Forex trades can result in good profit-making opportunities.

Flexible capital requirement

The minimal contract sizes in forex trade are very flexible, making it possible to take a position with the amount of money you are comfortable with.

No commissions and low transaction costs

Traders do not have commissions. No clearing, exchange or government fees. The lack of a central regulator for the Forex market keeps costs low. Most brokers do not charge commission but take a low spread. It typically amounts to 0.1% of the operation cost, or even less depending on the size of the broker.

Trading with Vantage FX

Vantage FX is a global name. The Australian broker is renowned around the world for its tight spreads, lightening fast execution and superior platform offering. They have won numerous awards both in Australia and internationally covering a whole range of areas. Nowadays there are so many forex brokers to chose from, but Vantage FX competes on quality and this is clear in their offering to clients and in their service towards clients.

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