Foreign exchange (forex) or currency trading is a global market that is highly liquid, with a huge trading volume daily. While traders make a choice of which market to trade, they will look for optimal trading conditions and the best chance of taking a profit. All this cretiria is fulfilled by forex. Forex is often the market of choice for novices and pros alike. If you already know what is forex, you can explore the top 10 benefits of forex trading below, among many other benefits that you will discover on your trading journey.

Few important benefits of forex trading are

1. Largest Market in the World

The Forex market is genuinely global because of its sheer size and trading volume. With traders from all around the world engaging on a daily basis and clocking a daily turnover of roughly USD 6 trillion, which makes forex undoubtedly, the world’s largest market.

It is widely preferred by traders worldwide since they can easily buy and sell currencies at their fingertips using platforms like Winstone Prime.

2. Forex market hours

The forex or currency market  is open 24 hours a day, five days a week and it can be traded from 9pm Sunday to 10pm Friday (GMT). The reason behind the long trading hour is the forex transactions completion between parties directly, over the counter (OTC),instead of through a central exchange. Since forex is a truly global market, traders can always take benefit of different active session’s forex trading hours.

3. Nobody Owns the Market

Due to the sheer size of the forex market and the large amount of participants, it is merely not possible for a single institutional trader (no matter how big) to control market prices for an extended time period. The Forex market shortly readjusts itself and levels the playing field. Moreover the forex or currency market is decentralized market and There are no middlemen in forex.  Retail forex broker simply facilitates the connection between the trader and the other trading participant. The forex  market is influenced directly by the economy itself, but not by one person or a company. You can’t corner it and you can’t control it.

4. Huge volume and Most Liquid Market

Forex Market is extremely liquid market. This means that given the large volume being traded at any given moment, under usual market condition. You can buy or sell as you wish with just a click, as there will usually be someone on the other end willing to trade back. You can even set automatic trading in your platform.

Sometimes, Market has quite time also but generally there are always trades to be made.

5. Leverage

Forex brokers allows the traders to buy and sell in the market by making use of significant amounts of leverage, Thus the trade can trade with higher amounts of money than what is actually in their accounts.

Example : If the trader were to trade at 20:1 leverage, the trader could trade $20 for every $1 that was in the account. That means the trader could control a trade of $20,000 using only $1,000 of capital.

But remember leverage is a double edge sword, without proper risk management, you can lose more than your deposit.

6. It’s for Everyone

Forex trading is for everyone, not just meant for the big shots. Starting forex will not cost a lot of money, especially when compared to stocks or options, and this is main attraction for large number of people globally. With a small capital, forex trading can be started thus forex trading is accessible to the average individual.

Winstone Prime offers trading accounts with only $200 minimum deposit, and leverage up to 1:500 is available*.  This doesn’t mean that you’ll be a forex pro right away, it takes a lot of time and practice to learn and become skillful so we would advice to be slow and warm your way in. Follow our Research and knowledge section to build your trading knowledge.

7. No restrictions on directional trading

Contrary to the stock market, the forex does not have any restrictions on directional trading. Traders can buy or sell a currency according to the state of the market, Trader can either go long or sell short based on the prediction of change in value of the currency. Due to the high liquidity of currencies, brokers do not charge any transaction fees for such trading that are required in stock markets.

8. Low Transaction Costs

The difference between the bid and ask price is the broker’s spread which is the retail transaction cost. Well capitalized brokers can offer tightly competitive spreads which helps in reduction of the trading costs and maximizing the profits.

9. Technology

As the forex market is relatively new compared to stocks, among the advantages of forex is that its participants have embraced technology willingly. There are plenty of software and mobile applications that facilitate trade in real-time from around the world. Meta trader 4   and Meta trader 5  are widely used trading platform and most preferred by the traders.

10. Free demo account to practice

Free forex demo account is available to practice trading before going live. Traders can trade in the real market setups without risking their real money.  A demo account proves helpful for the traders to check and improve their trading skill in the real market condition. And great news is  that it is all for free and without any commitment.

As you are now aware of the top 10 benefits of the forex, why not open account and start your trading journey.