These days you will stumble upon a myriad Forex brokers touting their services. And during the last couple of years, Forex trading gained tremendously in popularity. The market’s daily turnover is estimated in trillions of dollars, making it one of the most liquid markets in the world. Let’s take a closer look at the core reasons for Forex’s market popularity among online traders today.
Why do people prefer Forex over other markets?
Unlike the stock market, Forex is a decentralized market available 24/7 for online trading via brokerage platforms.
Currency trading is quite straightforward to learn. And the internet abounds in free trading educational materials. In most cases, when you open an account with the brokerage service, you get free access to their training and also a demo account available. So you can train your trading skills without any penny invested.
You can train yourself as long as you wish until you feel confident and are ready to invest your first money. Moreover, you are usually required to make initial deposits of some 100 bucks to get started, so there is no need to worry if your budget is limited.
Can you get rich trading currencies?
It’s true that many start trading currencies with the hope of getting rich quickly. However, it is not viable, especially at the beginning. However, what makes Forex so attractive for many online traders these days is the possibility of creating a stable income stream.
If you do it wisely, without the urge to make millions but with a realistic mindset, you can quickly start earning on Forex. It could be measured in hundreds of dollars a month in the beginning. But as you get more experienced and confident, with the right strategy in place, you are set to win more than losing. Beware that when starting out, focus on minimizing the losses instead of running after tremendous profits.
Perks of leverage
Leverage is one of the best perks with Forex trading. And it seems it is one of the main reasons traders are attracted to this kind of investment. What exactly does leverage mean for trading currencies? It entails borrowing an amount of money from your broker in order to have greater exposure to the market and more profit opportunities.
For instance, if you dispose of $100 and use the 1:50 leverage, it means that you can start trading with an amazing $5000. However, the leverage also brings risks along with opportunities.
For traders with risk appetite we suggest reading the Bittradehouse review and see what Bittradehouse brokerage has to offer you beside the leverage of 50:1.
The volatility of the market
The prices of currencies are ever-changing, and that’s what we call volatility. And we are talking about the changes that happen in a matter of minutes, even seconds. The volatility is your opportunity for earnings. And the best part is you can profit from the downtrend and the uptrend. For a more specific explanation of how to profit from price volatility, we recommend you start with some beginner tutorials and ebooks.