Why would you want to give up trading stocks or futures and trade the Forex?

After all, isn’t the Forex a much more risky market? 

Well, first of all many things in life are risky if done ill prepared. The Forex certainly is no exception. And yes, the Forex might present a potentially higher risk than trading other markets. However, therein is also its great potential.

Liquidity! The Forex is a very large and hence liquid market. For the small retail trader this means fast execution – no problems getting into a trade or getting out of a trade (this may not be totally the case if you choose to trade one of the less liquid currency crosses!).

Leverage! The Forex provides greater leverage – 100/1. But remember, leverage works both ways; it can work for you or against you!

Accessibility! The Forex market is a 24-hour market. While this statement is correct, most market maker/brokers (the business that provides you access to the Forex) will be closed for some time during the weekend. However, you have access to this market 24 hours a day at least for 5 to 6 days of the week (depending on your broker)!

Commission Free! Most Forex brokers do not charge the traditional commissions typical with stocks and other markets. Your broker makes his/her money on the point difference between the currencies at the time a trade is placed. Most currencies have a point/pip differential (the spread) anywhere between 2 to 8 pips.

Low Startup! It takes less of your dollars to start a trading account and to maintain that account. Again, this can work for or against you!

Great trending markets! The Forex market trends extremely well, much of the time, much more so than other markets. Hence, this market lends itself to use pure technical analysis (if that’s what you like).

By now do you think you might be interested to find out more about this opportunity? Or do you think that at minimum the Forex deserves your consideration?

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