For Newcomers: The Good Things about Forex Trading

Trading comes in all shapes and sizes, which isn’t exactly a good thing for newcomers to face. For someone trying to go into trading for the first time, an important and quite intimidating question immediately comes to mind: What am I going to trade? All types of trading industries have their own advantages and disadvantages – information that might not be easily accessible for those who are just starting out.

Current trading trends, however, point to Forex Trading as becoming extremely popular, especially with beginners. Trading Forex has quite a number of advantages that fit newcomers. Following are the top five good things that seem to pull in trading newbies.

Trade All Day

Forex Trading goes on for 24 hours a day, 7 days a week. For those who are still starting out (and planning on making it big in the trading business, eventually), leaving your day job for something you know relatively little about might not be an attractive option. With Forex, you can still go to your day job, and sneak in a few hours of trading before going to bed. This means you still get to have that monthly paycheck, while earning something on the side. Forex trading gives you the freedom with regard to time – something which other types of trading are not always able to do.

Trade Anywhere

Forex trading only requires three things for success: a reliable computer, good internet connection, and a sound mind. No special time slots and confusing places. The fun part is that you can trade with people from all corners of the world, at the comfort of your own home. That’s virtual traveling while earning at the same time!

Low Trading Cost

Forex trading does not have commission fees that take a big chunk out of your supposed income. Transaction costs are also relatively smaller (typically less than 0.1%, or 10 pips). Larger dealers could offer transaction costs at less than 5 pips, whereas fast-moving markets might offer wider spreads (retail transaction costs).

Market Freedom

Unlike other trading systems, Forex trading is difficult to manipulate. This means that there are no specific people or corporations controlling Forex. In Forex trading, the vastness of the entire market does not pave way for monopoly-like manipulation, even by the world’s biggest banks. All’s fair in Forex trading.

Liquid as Water

Forex trading has the highest liquidity of all markets. There are always buyers and sellers, which makes it possible to enter and exit the market at your own whim. This type of flexibility cannot be achieved in any other type of market.

All these advantages point to two main characteristics of Forex trading: flexibility, and freedom. If these are what you're looking for in a new trading venture, then Forex definitely is for you.