Forex or stock market
In the last article on “9 Reasons on Why You Must Trade Forex (Part 1 of 2)”
You have understand the:
1. Round the clock trading
2. No need to choose from too many counters
4. Good Leverage
Next you will understand more on why you must trade forex.
5. No Brokerage fee or commission
Forex brokers mostly make from the spread between the bid and ask prices. Unlike other stock brokers where on top of the spread between the bid and ask prices, they will charge a commission based on the percentage of total value of contract.
6. Able to short currencies
In forex, there is no restriction on short selling as all currencies are traded in pairs. i.e. you buy or sell one currency against another unlike stocks and shares. Without the restrictions, a trader can react quickly to the changing dynamics of the market unlike in the equities market where short selling is discouraged or made inconvenient to do.
7. Minimum investment
You can start trading in forex from as little as USD200. The amount is dependent on the broker you are opening an account with. This is due to the leverage a trader can obtain from the broker which allows such low minimum deposit.
8. Trade globally
With the overwhelming prevalence of internet and the many easily accessible forex trading platform provided by the forex brokers, we can now trade anytime and anywhere in the world as long as we have access to the internet.
Source: Software FOREX
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