Forex trading has many benefits which cannot be adequately described in few words. This giant market is growing gradually because of its extraordinary services to the traders. Investors around the world are getting more interested day by day in this profitable marketplace because of its outstanding features and benefits.
With a basic knowledge in Forex, anybody can execute trades and make a tremendous profit using leverage. Trading is completely different from other investment businesses. Most importantly, the profit making scope of trading is getting much better due to the advancement of technology. Today, we will discuss some of the most common benefits which have turned the Forex trading business into a blessing for traders.
This overly crowded marketplace is accessible from any smart device with the help of the internet. An investor may take part in trading even when taking the view of the beautiful seafront on holiday. All he needs is a smart device with an active, reliable internet connection.
Using a mobile phone, you can browse the Forex chart and see the current market condition and think about your next trade. The user interface is very user-friendly and even the fundamental analysis can be done by using the news terminal usually available in the advanced terminal. For instance, if you trade with Saxo, you can do technical and fundamental analysis in the same trading platform.
2. Risk free learning environment
No investment business provides a free training ground but in Forex you can learn everything with the help of a demo account. The demo account is very helpful for novice Singaporean investors who have no previous knowledge of the platform.
A demo account provides all the facilities like the real account but the only difference lies within the use of fake currencies. This means you do not have to be responsible for the loss or profit while trading the practice account. The process is very helpful to learn about the advanced techniques of trading practically as you can test different trading strategies and learn more about the market dynamics.
Experts take the benefits of a demo account as it helps them to sharpen their trading strategies. They do various research work including fundamental and technical analysis. In short, they utilize the demo account to their benefit as a test lab to check if a certain strategy will work or not. Try to act like the experts and conduct your trading experiments in demo accounts.
3. Lowest deposit
With the help of a broker, you can execute trades with a very small investment. Sometimes brokers offer beginners a $10 investment facility or even less. Using this opportunity anybody may start trading. However, we highly recommend that rookies start with a decent balance in their professional trading account. Usually, the brokers which offer very low investment limits to trade with them don’t have high-end tools.
Forex platform provides a 1:5+ leverage option that means anybody can trade with big lots even though their investment is small. But before utilizing the leverage, you must know the risk factors as it may work as a two-sided sword.
It is often found that because of taking high leverage, most beginners have blown up their accounts. You must understand that leverage is a loan from the broker and you can’t have a floating loss in your account higher which will make it impossible to repay the loan. So, if you lose more than 80% of your balance from a certain trade, the broker will close the trade automatically which is often known as the margin call.
By now you know a lot about the trading industry. So, if you want to start your career, you must prepare yourself properly. Take advantage of the practice account and devise a trading strategy. Create a long-term goal so that you don’t have to trade without having a specific mindset.