Many traders in Australia and many other different parts of the world are choosing forex as their major trading market. One of the reasons for choosing forex trading is that it is an easy market to trade and it comes with many benefits. It is also has the advantage of being the most highly liquidity market in the world and the only platform where one can trade all the global currencies. Some of the largest financial centres in forex trading are London, New York, Tokyo, Zurich, Sydney, Paris, Frankfurt, Hong Kong, and Singapore among others.
Benefits of trading in forex
Forex trading comes with many benefits and below are some of the advantages that make many people opt for the market.
The forex market does not go to sleep and you can trade at any time for 24 hours. There is opening or closing bell. This is a great opportunity especially for those that do not trade full time but can only do so when they have the time. They can choose to start their day with a morning trade before they go for other duties, trade over their lunch break, in the evening once they leave work or even make a trade before they go to sleep. Whatever time you deem fit, the forex market will be awake.
Free of commissions
Unlike many other trading markets where you pay commissions for the transactions, in forex trading, you enjoy trading with minimum or no commissions at all. Forex trading does not incur clearing fees, exchange fees, brokerage fees and no government levies. If you are trading with the help of a brokerage firm, the compensation for their fees comes from the bid/ask spread.
Low transaction costs
Forex trading transaction costs are some of the lowest in the market but that will largely depend on your leverage. One single retail transaction is no more than 0.1% depending on conditions in the market. Larger transactions can even have a spread as low as 0.07%, also depending on the market conditions and your leverage.
No single entity controls the market
Forex trading is a huge market with many participants from all over the world and it is one of where no single entity or organisation can control for an extended time. Even the mighty central bank cannot control the forex market prices. Therefore, if you are trading in Australia or trading in New York, you all get the same deal.
Because of its popularity and enormity, the forex market features the highest liquidity among all the trading markets today. This means that under any normal market conditions, you can make a sell or buy at just a click of your mouse because there will always be someone on the other end willing and ready to transact with you. Forex trading is one of the few markets where you will never find yourself in a stuck position because you can choose to stop trading once you attain your level of profit or leave when the odds go against you.
Low barriers to start trading
You may think that trading in currency will cost you a lot of money but the contrary is the truth. Trading in foreign exchange is much cheaper than trading futures, options or stocks and commodities. Online forex trading brokers offer micro and mini trading accounts where you can start trading with as low as 25 Australian dollars. For details on how to go about this, visit your favourite forex trading broker to learn more. It will help if the broker you get to help you with your trading activities runs you through everything to expect and everything you need to start trading.
The above are some of the advantages you get from forex trading. Many other advantages not mentioned here also make every forex trader make good profits out of the transactions while at the same time keeping their risk capital to manageable minimums in forex trading. All you need to do is learn more about what is in store for you and choose your broker wisely especially if you are a fist time trader.