There are many ways for individuals to manage, trade, and invest. The Forex Market itself, is a wonderful option amongst many. What makes Forex Trading different is that the nature and numbers of opportunities for gain are tremendous in comparison to others.
The Forex Market Never Sleeps.
Unlike the set hours of operation for traditional stock exchanges, access to the inter-bank system is available 24 hrs a day (with the exception of week-ends). The foreign exchange markets themselves are located in strategic geographical locations across the globe This gives the individual investor, the ability to trade with much greater flexibility. By trading and placing market orders electronically, no physical exchange is taking place. As a result individuals are able to set up strategies and routines on their own terms, allowing you to benefit without having to be physically present. With the invention of comprehensive trading mobile applications and interfaces the freedom to trade is no longer limited to the computer terminal, giving the individual investor the freedom to trade from anywhere.
While traditional investing through major banking institutions can be very profitable. The amounts of capital and analytical research needed is quite high, limiting the number of individual investors with access to markets. With the Forex Market, setting aside large amounts of capital to accomplish substantial returns isn’t a factor. By trading online, one can simply begin trading with modest amounts, and few restrictions.
Forex Trading allows individual investors to open trades that are as much as 200 times larger than the actual capital invested. To give you an idea of what this looks like. One can open a $10,000 USD trade with only $50 USD invested, and still benefit at the same percentage of profits at the $10,000 level, instead of the $50 level.
Low Transaction Costs.
Unlike speculation through traditional institutions that charge individual investors a variety of service charges and fees in order to execute transactions. The high liquidity available within the Forex market (liquidity meaning how quickly one is able to buy or sell), and the high volume of transactions continually taking place, makes the costs by comparison quite low.
Unlimited and Unmatched Earning Potential.
To give some perspective here a comparison is needed. In the United States of America, GDP (total value of all goods and services produced) creates roughly USD $15 trillion annually in “turn over”. By comparison, the daily trading volume within the Forex Market is just under USD $4 trillion dollars. The Forex Market is able to turn over the same dollar amounts in less than a week, than the United States of America is able to turn over annually. To go even further it would take the Forex Market just under 3 weeks to turn over the equivalent of the combined annual GDP of the entire world.
Profit in Both Directions.
As the saying goes, certain markets only allow individuals to make money by "Buying Low", and "Selling High". This is not the case in forex. The individual is able to first sell a currency during a market high (known as “shorting” the market) and then subsequently buy it back at market lows. As long as there is movement in the market, in any direction, opportunities for transactional gains exist.
The Market is Too Big to Allow Anyone to Dominate.
The actual size of the Forex Market makes it nearly impossible for any one entity to control. governments, financial institutions, corporations and individuals will find the Forex Market to be a much more level playing field for speculation where all can benefit and compete.