News & Blog
Why Should You Trade Forex?
- May 28, 2021
- Posted by: Admin
- Category: Blog
Trading forex is a great idea, as it comes with a number of different benefits. Once you learn some important forex trading skills, you will see all of your hard work pay off in the long run. Below, our team at Smart Prime Academy has come up with a list of some of the advantages to trading forex.
Entry Requires Little Money
Many would assume that it would be costly getting yourself involved with the forex market. The truth is, it does not cost a lot when compared to futures or stock trading. Online brokers provide “mini” trading accounts with account deposits as small as fifty dollars!
Do we recommend that you open an account with the minimum? No, of course we don’t. This small cost of entry, however, opens up forex to a much larger community; a community that is less knowledgeable when it comes to trades.
A Market That Is Open 24 Hours
When you trade with forex, there is no need to wait for the market to open. From the opening on Monday in Australia to the close on Friday in New York, the market is constantly open and available to use (with the exception of weekends).
Transaction Costs Are Low
The transaction cost for forex is most often less than 0.1% under average market conditions. When it comes to transactions that are bigger, spread can be as low as 0.07%. At the end of the day, this will all depend on your leverage.
Zero Unwanted Costs
When you trade with forex, you don’t have to worry about exchange fees, government fees or clearing fees. The majority of brokers in forex are given sufficient pay through what is known as the “spread”.
No Specific Lot Size
If you look at another market such as futures, the lot sizes are determined directly by the exchanges. When it comes to forex, however, you can trade lot sizes that are a lot smaller. This gives traders the option to open up trades that can be as small as a thousand units.
This market is very liquid due to its significant size. This, of course, means that under normal conditions, you can buy and sell as you please in the comfort of your own home. Another benefit is that you are never “stuck” in a certain kind of trade. You have the freedom to close it once you have reached the desired level of profit.
In forex trading, a little deposit can go a long way in controlling a much bigger contract value. This leverage gives forex traders the chance to make great profit while keeping any of the risk at bay.
Regardless of this benefit, it is important to understand that leverage is still risky. This is why you will need sufficient risk management services to ensure you don’t experience any big losses.
How We Can Help
If you are keeping your eyes out for foreign exchange market courses in Richmond Hill, there is no need to look any further than our services here at Smart Prime Academy. Our strong standing, highly professional business can help you become the most knowledgeable forex trader out there. From start to finish, our experienced team will help navigate you through some of the most intricate and significant lessons in the FX market. To find out more about how we can help, be sure to give us a call at 1-877-870-0092 today.