Why Trade Forex | 7 Benefit of Forex Trading
What is Forex Trading?
Forex trading is the exchange of two currencies in the foreign exchange market. You buy or sell currencies (which come in pairs) to drive the most value out of the difference in the exchange rate.
How Forex trading works?
When you believe the value of the base currency will increase or decrease, you open buy or sell positions accordingly. You need a Live account for this. Open a Live account at Seven Star FX, one of the world's most trusted forex brokers.
Coming to the ‘why trade Forex’ part. There are many benefits of Forex trading.
With a top online Forex trading platform, you can unlock the following advantages of Forex trading:
A 24-hour market
The forex market is accessible 24 hours a day, five days a week. So, it is truly a global market for all. You don't have to wait to open your positions. The moment you identify opportunities, you can make your move. With the right trading strategy, you can also benefit from different forex trading hours of active sessions.
About $200 billion is traded every hour, on average, in the FX market. (That means >$50 million a second!) It's the largest financial market in the world. So, it is highly liquid, reassuring traders that they don't have to wait to buy and sell. You can close or open the position with a click in seconds.
Low barriers to entry
Millions of people trade in the Forex market. One of the biggest reasons for that is low barriers to entry. You can start Forex trading online with very little capital. Opening a Live account is simple as well. At Seven Star FX, we allow traders to start with as little as $50. If you haven’t yet opened your Live account, go here and get started.
Leverage can help you maintain minimum risk and, at the same time, provides you opportunities to make a higher profit. For instance, when you see leverage of, say, 100:1, it simply means you can trade $100 for every $1 present in your account. So, with higher leverage, you can trade with a higher amount than what is actually in your account. And this is one of the key benefits of Forex trading.
Low transaction cost
The retail transaction cost in the Forex market is low. Top Forex brokers like Seven Star FX offer a very competitive spread, measured in pips, allowing traders to maximize their profits and minimize costs. So, don't worry about transactional (and hidden) charges splitting away your profit. The gains you make are completely yours.
No room for manipulation
Forex market touts a daily trade volume of $6.6 trillion. As mentioned, it's the largest financial market in the world. So, no one individual or group can control the market and the prices. The forex market is truly decentralized. With such high participation and liquidity, there's no way to manipulate the market. There are no middlemen either. With the right Forex broker by your side, you enjoy No Dealing Desk (NDD), as well as Straight Through Processing execution. This ensures complete transparency and higher control over your trades.
Hedging is a great risk management technique. You can use the technique to open multiple strategic positions and thereon mitigate or limit losses. Of course, the hedging strategy you use depends on your goals, portfolio, and other factors. But the ability to hedge Forex stands as one of the top advantages of Forex trading online.
Many Other Benefits of Forex Trading
These are just a few benefits of Forex trading. There are plenty more like there's no fixed lot size; you're free to trade smaller lot sizes without any limitations. You can trade the highs, as well as the lows, with the right strategy. You get several currency pairs to trade; meaning, you have multiple options to diversify your Forex portfolio. These advantages of Forex trading are the reasons why millions of people are attracted to it. So, if you were wondering “why Forex trading”, hopefully, you have your answer now.
Become a Forex trader, bank on market opportunities, and achieve your financial goals. If you don't have a Live Account, create one right away. And in case if you're not ready to trade with your real money, create a demo account and get hands-on experience until you become ready.