New To Forex

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FOREX Trading Benefits

Forex Benefits1

When traders choose which market to trade, they are looking for optimal trading conditions and the best chance of taking a profit. Now it’s the time to know the major. Advantages of Forex Trading and some of the top Forex Trading Benefits.

Here we would be talking about some most important advantages

that encourage traders to trade forex in the spot market. So let’s jump to the topic.

Forex Trading Benefits:

Here’s the list of Benefits that you may get while trading forex. So, here’s a list describing the benefits of trading forex:

  • Low Costs – In the Spot market, normally there is low clearing fees, low exchange fees, low brokerage fees, and low commissions. Retail brokers usually make their profits from the Bid/Ask Spread which is apparently very transparent to users.
  • No Middlemen – Spot forex trading eliminates the requirement of middlemen and provides a benefit by allows you to trade directly with the market accountable for the pricing of a specific currency pair.
  • No Fixed Lot Size – Unless you are trading in future or options, in the spot market there is no fixed lot size for trading. This seems to be one of the biggest benefits of forex trading. Usually, brokers provide the option to buy in multiple lot sizes as per your convenience, hence you require less money to start trading.
  • Low Transaction Costs – The retail transaction cost (the bid/ask spread) is usually less than 0.1% under normal market. At larger dealers, the bid/ask spread could be as little as 0.07%.
  • No One Can Corner the Market – The foreign exchange market is so large (approx 6.6 trillion dollars) and has so many participants that no single entity (not even a central bank) can control the market price for a prolonged time period. Hence the chance of extreme drop or gain in exchange price is very low.

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