Forex trading has been seen as one source to income in investor’s portfolio. Forex trading does not require any capital outlay. The potential for income is endless, depending on how well the forex trader manages their money. Foreign currency trading is more profitable than shares trading, read next page.
1. A small capital outlay
To open an account, you will need USD250 minimum. The majority of forex brokers offer both a’mini and’micro trading account. This will allow new traders to get a feel for the market before they put more money into trading. There is no minimum investment requirement for forex trading, unlike options, futures, bonds, or shares. It is USD1000. Even a small investment of USD250 is possible to double the amount within a month. This depends on your trading skillset and the frequency with which you trade.
2. Low transaction cost.
We don’t need to pay the fees that are associated with trading shares. We don’t need to pay broker fees. They get compensated by the bid-ask differential, which is basically the spread between selling and buying prices. The difference in price between buying and selling.
3. Trades can take place at any time.
Forex trading is available 24 hours a year. If you live in Singapore, Malayisa or the Philippines, the forex market opens on Monday at 6am and closes on Saturday at 6 am. Home-maker, professional or not, you can set your own trading hours. Forex trading can be started part-time or full-time. You can’t do this if your trades are in other instruments.