Lesson 3: The Advantages of Forex Trading versus Other Financial Markets

Forex is the biggest market in the world, and has met for several years an undeniable success with traders, the traders who run their career independently from home with their personal account.

And if they are so numerous to turn to forex, it is that the advantages of the currency market are many and major, especially for traders who are not hired by banks in trading halls.

Forex is open 24 hours a day

Unlike the stock market, the forex market is open 24 hours a day, from Sunday evening to Friday evening (French hours).

This means that you can trade absolutely whenever you want , which proves to be very practical if your schedule is loaded.

This is indeed a major advantage , since you can begin to gain experience on forex while continuing to carry on a classic business activity , so may be switching to full time trading when you are ready.

Forex is a no-cost market

Forex trading is virtually free. Brokers generally do not charge any fees.

On the forex, there are no brokerage fees, custody fees, account management fees or anything.

The broker's remuneration comes from the "spread", the difference between the sale price and the purchase price of a currency at the moment T.

Some brokers, however, charge commissions on the volume of your transactions, but this kind of broker offers very low spreads, see zero, which is the same if you make the calculation (or even more interesting).

Forex is a market with many opportunities

There is always a good forex trading opportunity. Indeed, the leverage proposed by the brokers makes it possible to earn a lot of money on very small variations, which multiplies the possibilities of gains.

Moreover, it is quite rare for a currency pair to evolve without a trend for a prolonged period, especially as regards the EUR / USD.

And if you trade other currency pairs than the EUR / USD, you'll be sure to have every day and every hour interesting opportunities.

Forex is a market safe from manipulation

Forex is also the biggest market in the world. More than $ 4 trillion dollars are traded daily on the forex.

With such a volume, it becomes difficult to manipulate prices, even with multi-million dollar positions, unlike equity markets, which are often manipulated by professionals.

The only economic players capable of actually influencing Forex are the Central Banks, and the trading room traders working for the banks are no more informed than the lambda trader who works at home as regards the action of the central banks , Contrary to what happens in equity markets, where success often depends on your ability to have the right contacts, and the right privileged information ...

Forex is a market with no traps

Often, when trading in equities, it is realized that a good analysis has been invalidated by statements made by an officer or by the signing of a contract that impacts the course of trading, Action to which we are interested.

On the forex, there is a precise schedule and forecasts of publications and statements that could influence currency (economic calendars). So you can, thanks to the economic calendars know when an important statistic is going to be published, and thus avoid the bad surprises.

It should also be noted that the results of the statistics are available at the same time, for everyone, professionals or individuals. Just have a good source of information, such as Premium Access ProfessorForex.com.

We are certainly not immune to surprising and influential statements from a central bank boss or a politician, but again, by being promptly informed, the damage can be avoided.

Forex makes it possible to gain on the increases as easily as on the declines

Forex allows you to bet on the rise or fall of a currency. It is certainly also possible to do so on the stock market, but not on all stocks, and sometimes only through obscure "derivatives".

Moreover, in times of crisis, short selling is often prohibited on equities.

On forex, the only difference between betting on a downside and betting on a rise lies in the fact that you have to click on sell instead of buy , and that you win if that drops, instead of winning if it goes up.