Advantage of Forex
In today's marketplace, the dollar constantly fluctuates against the other currencies of the world. Several factors, such as the decline of global equity markets and declining world interest rates, have forced investors to pursue new opportunities.
The global increase in trade and foreign investments has led to many national economies becoming interconnected with one another. This interconnection and the resulting fluctuations in exchange rates have created a huge international market: Forex. This market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle. These factors equate to the following advantages:
- Zero commissions.
- Zero middlemen.
- Free trading size.
- Minimal transaction cost.
- High Liquidity.
- A 24-hour market.
- Online access.
- No market manipulation.
- Free "Demo" Accounts, News, Charts, and Analysis.
- "Mini Account" Trading.
Unlike any other investment types, trading Forex requires none additional charges / fees (i.e.: clearing fees, no exchange fees, no government fees, and no brokerage fees).
Forex trading requires no middlemen and allows investor to interact directly with the market maker responsible for the pricing on a particular currency pair.
Investor is free to determine their trading size in each of their trades unlike futures markets where lot or contract size is determined by the exchanges. This allows traders to effectively participate with accounts of well under $1,000.00. It also provides a significant money management tool for astute traders.
The retail transaction cost (the bid/ask spread) is commonly less than 0.1 percent under normal market conditions. At IKOFX, the spread could be as low as 2 pips.
With an average trading volume of $4 trillion per day, Forex is the most liquid market in the world. It means that a trader can enter or exit the market at will in almost any market condition.
A trader may take advantage of all profitable market conditions anytime. There is no waiting for the opening bell, from Sunday 2200 EST to Friday 2100 EST, the Forex market never sleeps. This is good for those who want to trade on a part-time basis, because investor can choose to trade in anytime they wanted--morning, noon or night.
The big boom in Forex came with the advent of online (Internet) trading platforms.
The borderless forex market fills with massive participants to the extent that no single entity can manipulates the market price.
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
IKOFX offers free “demo” accounts for practice trading. With breaking Forex news and charting services on the website for beginner traders who would like to hone their trading skills with virtue money before opening a live trading account and risking real money.
You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. IKOFX offers "mini" trading accounts with a minimum account deposit of $1 USD. It makes Forex much more reachable to the average individual who doesn't have a lot of start-up trading capital.