FOREX : An Alternative Investment Vehicle

December 1, 2013 8:03 am0 commentsViews: 71

forex_tradingForex (Foreign Exchange Currency) trading has been used by international banks and large investment companies for years to earn millions. Nowadays, with easy access to the Internet, it is now possible for any investor to take advantage of this powerful tool.  Even with minimal startup funds at hand, it is now possible for an investor to earn money with Forex trading the same way large institutions do.

 

With very little understanding of Forex, it was observed that even experienced investors seem perplexed by the Forex Market.  Therefore, it is important to emphasize that Forex trading is not much different from the Stock Market.  Often, the same or similar techniques that can be used to trade stocks and commodities are also used to trade currencies.   However, the lack of available information and training opportunities somewhat makes Forex trading peculiar.


Here are ten good reasons why a business investor should consider Forex as an alternative investment option :

 

#1 – A 24 hour market. You don’t have to worry about running out of time because the Forex Market is open 24 hours a day, nearly all week.

 

#2 – Huge liquidity. Have you ever got stuck trying to get rid of some stocks or options?  With Forex, there are always buyers, thousands of them!


#3 – No commission on your trading.  This is especially important for individual investors with small amount of money to invest.  When using other investment vehicles, the cost of the investment is often prohibitive no matter how attractive the investment itself is.  Brokerage and other government fees can easily eat up your profit even before you completed a transaction.  With Forex trading, there are no brokerage, government, and other fees involved.


#4 – Low transaction costs.  Typically less than 0.1%!


forex_trading1#5 – No middleman.  The investor is dealing directly with the market.


#6 – Instantaneous transactions.  The Forex market is fully computerized and online transactions can be completed in as little as 2 seconds. The investor does not have to wait for trade confirmation to arrive by email, worst yet, by post.  All ‘paper-works’ are in electronic format, easily viewed, searched and analyzed.


#7 – Huge leverage yet low margin.  Both increase your profit.  In most cases leverage of 10:1 to 100:1 is the rule, not the exception.

 

#8 – Minimal startup requirements.  Again, this is very important for individuals or small investors.  With Forex, it is possible to start trading with as little as a hundred U.S. dollars!

#9 – Easy access to the Market and your accounts, online, 24/7.  Since Forex Trading is completely computerized, anyone with Internet access can trade online and easily access account and trading history.  Most trading platforms allow the user to export information to other third party software application for storage, graphing and analysis.

 

#10 – No insider trading.  Because of the way Forex is ‘de-centralized’, it is almost impossible for anyone to fraud the system.

 

The Forex market is vast, making it the largest market in the world with an average daily volume that runs in trillions of dollars daily. The advancement in internet technology has increased the capacity for greater involvement in the business, as we now have a larger community of stay-home investors. Seemingly, it has become easier to get involved as a forex trader like never before, as entry into the market has become a lot easier, with more flexible deposit/withdrawal options.

 

Indeed, Forex trading is an amazing tool for business investors as well as a very exciting opportunity for individuals.

 

 

Learn how to trade foreign exchange currencies in a smart and simple way through iForex! 

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