Until few years ago, trading on a foreign currency exchange market was reserved for financial institutions. Now, trading on this very active market is opened to retail investors and traders, however, many still don’t venture in this arena. This is primarily due to lack of understanding of this market’s advantages. It has high liquidity with quite low trade commissions. Importantly, you can use the leverage in your trading, but ensure you have sufficient knowledge of the market with all its risks and pitfalls.
- With foreign exchange, traders are already dealing with money, which means large sums of it can be transferred without too many obstacles.
- Another significant benefit of Forex is the absence of commissions in most cases. The majority of service providers on a foreign exchange market get a commission by spreads.
- In most cases, starting a career as a Forex trader can require less financial resources than most other markets.
“However, just like any other type of trading, Forex trading is a very risky and financially dangerous business.”