London, UK, 11 July 2021, ZEXPRWIRE, Foreign exchange trading, or forex trading, is gradually growing to become a prevalent method of trading. While the stock market caps at around £200 billion, the daily trade value in forex is about £4-6 trillion. It is a significant difference.
The process of understanding, learning the market, and how trading works is relatively seamless. These qualities, with high volatility, which can be a big plus, make Forex trading a lucrative option.
Let’s shed some light on the reasons one should consider currency trading like forex as an investor.
1.Start With Minimum Amount – Beginner Friendly
You don’t need a large sum of capital to start forex trading, and there is a minimum limit of 0.01 lots per trade. Most brokers will require a minimum deposit, this usually is from as little as $50, or you can start trading on a free demo account, but of course, you won’t earn real money with this.
Apart from the low monetary requirements, Forex trading is also beginner-friendly.
However, it is easier to understand the market if you receive the proper education, ideally from a proven professional trader. With Forex Trading, there is no need for you to keep yourself up to date with things like fortune 500 companies or quarterly reports etc, unlike stocks.
Moreover, the Forex markets are made up of 28 currency pairs, making it more convenient to analyse and trade. Therefore, if you’re a self-sufficient person, this may be a lucrative option for you.
With a service that provides training for forex trading, new traders can start their journey to become consistently profitable traders. Learning forex trading from scratch is an essential step when it comes to entering the forex profession. Most people who go into the forex market without any training will lose their money, which is where the 90/90/90 rule comes in. This is where 90% of traders lose 90% of their money in the first 90 days.
With this information, it is clear how important it is for new traders to go through the appropriate learning process before trading forex.
2.Easily Accessible for Single Person Activity
Forex trading is widely available online. Unlike other forms of investment that require you to have different accounts or details, forex can be traded directly from a new account that is easy to set up.
More importantly, it is a one-person trade on your end and only needs to involve one other person at the other end. This means that making the actual trade is simple and won’t require multiple personnel.
You can create an account and start trading immediately. That’s what makes it so convenient and such an enticing option. It is also legal and available globally for you to access anywhere, 24 hours a day, five days a week.
3. Leverage for Highest Investments
This is perhaps one of the best reasons to start forex trading. Of course, there are brokerage firms, and you would have to choose one of these for trading; that’s a given. However, you get a higher ratio for leverage than any other investment. Leverage allows you to take more money from the market and invest it wherever you like. It is essentially the money you don’t have but can borrow.
Forex trading has a massive leverage ratio of anywhere, such as 1:1 to 500:1, or even more. Of course, it would depend on the country and the regulation of the government. However, it also means that you can get more money from approved or affiliated companies for Forex Trading.
In simple words, if you have the proper knowledge or qualification for FX trading but lack financial backing for larger trades, you can get support from these companies.
4. Available Round The Clock
This is much like a double-edged sword, but we will consider it as another benefit.
Forex trading is open five days a week for 24 hours each day. It’s because the exchange centres are located worldwide, and when one closes, another opens. Thus, you can trade anytime you like and make any decision. While there are daily trading limits for each currency pair, it is pretty flexible because Central Banks determine the limits.
Correlatively, you can work in currency trading according to your comfort. As there are online platforms to trade, you can conveniently do it at the comfort of your home or any part of the world.
5.High Volatility And Risk Mitigation
Both of these points might sound condescending, but it’s true. Forex trading markets can be highly volatile, and a currency’s value can grow or drop exponentially, depending on various factors like a country’s economy, political powers, and other factors. However, you can easily exchange which currency you want to buy or sell because Forex trading requires you to trade currency in pairs.
You can decide to go long (buy) or short (sell) anytime you like. However, many new traders believe that they can make a profit by buying or selling various currencies quickly. On the contrary, the best way to understand the market is by learning through a professional course. This will enable you to understand what matters in the market.
6.A Substantially Growing Market
Forex trading is becoming a very enticing option for people worldwide as it has a higher monetary investment than any other trading platform. Moreover, people recognise the risk factors and the affluent prospects forex trading is bringing into the market.
It is easier to understand once you get the proper education from a reputable source. Then, traders can open a demo account at any time. The demo account will help traders practice trading strategies without having to worry about dealing with real money. Once the trader has received enough data on their strategy and can see consistent successful trades, they can transition to a live account.
Conclusion
By trading forex, you will be open to a world of opportunities, such as achieving financial freedom, breaking free from your 9-5, working smaller hours so you can spend more quality time with loved ones, and much more.
If you are new to forex and want to start learning the market, there’s no better place than Guerrilla Trading. We have an excellent Trust Pilot profile with over 197+ reviews and an average rating of 4.4 stars out of 5.
Our specialised forex training course is specifically designed to help and guide you through the forex market. Learn our forex training course online without sticking to a certain schedule or attending in-person classes. You can learn wherever you want as long as you have a device with a stable internet connection.