What is Forex and How to make money with Forex 3

Why utilise the forex market to make money? Why should I choose forex trading over other investments?

In this series I am talking about forex. I will now give reasons for picking forex trading over other investments or financial instruments.

The forex market is basically the market where currency is traded, and it is the largest financial market in the world. Until the 1990s only major players and big institutions could play this game, but now with the rise of the Internet even the small guy next door can play this game. Information, knowledge, an internet connection, and voila, one can join in the forex market and do currency trading.

Some of the popular, major currencies being traded worldwide:

USD
United States
Dollar
Buck

EUR
Euro members
Euro
Fiber

JPY
Japan
Yen
Yen

GBP
Great Britain
Pound
Cable

CHF
Switzerland
Franc
Swissy

CAD
Canada
Dollar
Loonie

AUD
Australia
Dollar
Aussie

There are many benefits to trading foreign currencies in the forex market. These are the major and most important reasons:

There are no commissions, no middlemen, no fixed lot size when trading, low transaction costs, a 24 hour market, no one can corner the market, leverage, high liquidity, free demo trading accounts, and even better mini and micro trading options are available.

There are no commissions: Brokers are compensated by the bid-ask spread, and so there are no commissions.

There are no middlemen: Spot currency trading eliminates the need for middlemen, and so you can trade directly on the market for a particular currency pair.

No fixed lot size: You can determine your own lot size instead of having a predetermined lot size.

Transaction costs are lower: The transaction costs are lower than most other investments.

24/7 forex market: The forex market never sleeps, unlike your local stock exchange.

No one can corner the forex market: The forex market is huge and hence no one can ever corner it and control it for extended periods of time, even countries and their central banks cannot corner it.

Liquidity in forex is high: You will also never be stuck in a trade because liquidity is very high.

You can have free demo trading accounts: In addition, you can train and practise your skills in forex before you go on to do a real life transaction and real life forex moves.

Minis and micros? Also, if you don’t have much money, you can do the mini and micro trading accounts, which allow people who have little money to start out in forex markets doing currency trading.

You will need some basic capital (your money) and a high speed Internet connection if you wish to get started in forex trading. Good luck and all the best! More to come on this site about forex, forex markets, forex strategies and tips and much more on becoming rich and making money.