More and more investors are considering FOREX (FX) trading venture due to some of its distinct advantages. A small initial investment can yield very high investment returns in relation to the investment and there has been a massive increase in number of active traders in recent years. Here are some real advantages of trading FX:
No middle men and minimum execution time:
FX market does not allow middlemen and allows to trade directly with the market responsible for pricing of trading currencies. Another distinct advantage is faster execution of trading orders without any middle men.
100% trading profits:
Traders trading on the financial market on a daily basis are the ones benefitted from “free of commission” trading. Thus traders have everything to gain from their trading profits. FX trading is not complex. All that is required is to analyze set of currencies and find the perfect time to invest.
High leverage simply means better returns in relation to a smaller investment. Trader can make handsome profits keeping the risk capital to a minimum. With a minimum investment of 100 Euros, a trader can buy and sell currencies up to 10,000 euros. i.e.1:100 leverage. Bear in mind that risk management is crucial to prevent huge loses or else things can backfire.
No need of huge trading capital:
Unlike stock market, no huge trading capital investment is required in the FX market. A trader can start with bare minimum sum of money. $5000 is a decent amount to start trading of a reasonable trading size.
No taxes on capital amount:
The capital amount invested in FX trading is virtually tax free in Singapore. Click: IRAS Circular on FX gains to know more.
24 Hour trading:
End of the day, Public holiday Chinese New year or weekends are no barriers for FX trading. It is a 24 hour market where traders can trade on their convenience. Spend some time trading using demo accounts and pick up good trading strategies. Just by trading during spare time and you’ll be earning extra cash with your small investments.
Automated robotic systems exist to help traders who lack expert knowledge or ability to define a particular winning strategy. Traders can select either fully automated or signal based auto-trading and place more trades in the market than a human trader. Auto-trading helps to earn passive-recurring income following professional strategies.
Advantages of trading in the FX market are numerous. Not knowing FX trading need not stop you from venturing into this market. It is easy to try your luck and learn good strategies using a demo account. Virtual money handling using a demo-account prepares you to make smart moves in the FX market.