Forex trading has become accessible to everyone since the 1990s, no longer the preserve of large multinational trade companies and financial institutions that need foreign currencies to operate. What makes forex such a popular choice rather than stocks, futures and cryptocurrencies, is that it requires fewer resources to start and offers significant flexibility when it comes to the use of your time whether you are a professional or novice. Any trader should look at the pros and cons of the financial market before investing, but here are the top reasons to start forex trading.
Small start-up capital
When you are ready to start trading with your own money, brokers offer minimum deposits to live trade of around USD100 – USD200. Brokers will also offer support and information about the business and the industry, with the fx bonuses explained that are on offer on most broker’s sites. You are advised to start trading slowly whilst you learn and grow over time.
For those with a fear of financial insecurity or feel under threat of losing their job, the creation of an additional income stream is one of the benefits that forex trading offers. Most traders use forex as an extra source of funds which can build up over time.
Start learning for free
Forex trading does not require a specific training course nor special skills or experience to get started. All you need is the consistency and ability to learn. When you start forex trading, set up a demonstration account where you can practice trading without risking any of your own money. The software for forex trading is supported by third party software providers and comes with add-ons and plugins that keep your trades as simple as possible. With forex trading, you also learn a lot about the international economy.
Due to the vast number of opportunities to buy and sell, the forex market is considered to be volatile, which means the chances of a profit are also good. It is possible to see a price move about 50-100 pips on a major currency pair almost daily, which can earn you a tidy sum.
The forex market has high liquidity, which means that it can easily meet its short-term debts due to the number of buyers and sellers that are matched within a fraction of second. High liquidity and a large market also mean that the risk of price manipulation by a few big players is low, which means you can be sure you get a fair price for your trades.
Create your own work schedule
Being a trader means that you are your own boss, making your own decisions about when you work. However, you need a good work ethic and discipline to make a living from forex trading. Some people have found it helpful to structure their time with a trading plan and trading tracker that helps you be consistent but also assesses your performance.
Potential to be a millionaire
With patience, learning, wisdom and consistency, your forex trading can make you a millionaire, since the rate of profitability is high. Most people start forex trading part-time but are able to quit their jobs to focus on forex trading once they have been able to make a good profit by further investment that has led to successful trades. If you are successful, it is possible to become an account manager and gain a commission for managing accounts as well as profits from your own trading.
When you are forex trading, you do not need to be in an office. You can trade remotely, from anywhere that has internet access, which means it is possible to trade even when you are on vacation. Forex trading offers accessibility that few other jobs in your spare time are able to do.
The trading market is 24-hours
Forex is a 24-hour market during the week as it involves a global electronic currency exchange, with a market that opens with New Zealand and closes with the US. This gives you time flexibility for trading. Forex is one of the few businesses that allow you to trade anytime.
With all the reasons given, there is no harm in trying out trading, particularly if you start learning through the free to use demonstration sites in which you risk nothing. You can learn at your own pace in your own time since the markets are open 24/7 and the incentive to learn is maintained by the knowledge that you can turn a small USD100 investment into USD1 million over time.