How To Start Trading The Forex Market? (Part2)
Why is FOREX trading so popular?
Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse (most of them have wireless Internet connection).
If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection. Is simple as that.
When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry. Actually you act more like self driven money making machine. It all depends on you.
FOREX Trading is Economical and Start-up Costs are Low!
You can open an account to trade Forex with as little as $200 USD at the most brokerage firms.
I personally do recommend IC Markets, which offers a standart MT4 and MT5 platforms. MetaTrader 4 and MetaTrader 5 are the most popular platforms in the world. They are easy to use and do not require any special knowledge. In fact we have some metatrader lessons here on the website which will help you to start and will teach you the basics metatrader platforms.
Take a look metatrader videos here.
Main Benefits of Trading Forex
The Main Benefits of Trading the FX Market are:
- YOU don't pay commissions or fees!
- YOU can trade 24-hours a day !
- YOU can trade with large Leverage!
- YOU can have FREE Streaming executable Price quotes and live charts!
It is important to know the differences between cash FOREX and currency futures.
In currency futures, the contract size is predetermined.
With FOREX, you may trade electronically any desired amount. As many as you want times per day.
The futures market closes at the end of the business day (similar to the stock market). If important data is released overseas while the U.S. futures markets is closed, the next day's opening might sustain large gaps with potential for large losses if the direction of the move is against your position. In forex this can happen only after the weekend.
The forex market runs continuously on a 24-hour basis from 7:00 am New Zealand time Monday morning to 5:00 pm New York Time Friday evening.
Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva and New York/Toronto) ensure a smooth transaction as liquidity migrates from one time zone to the next. However sometimes its possible to see little gaps when switching over trading sessions.
Furthermore, currency futures trade in non-USD denominated currency amounts only, whereas in forex, an investor can trade in almost any currency denomination, or in the more conventionally quoted USD amounts.
The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic lulls in liquidity and constant price gaps.
The forex market offers constant liquidity and market depth much more consistently than Futures.
With forex, you may trade foreign currencies vs. USD or vs. each other on a 'cross' basis, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD
More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: (will be continued).