Forex trading has many advantages compared to discount brokerages. First there are no commissions, no exchange fees. This means you have more money to invest and not pay to others. A second reason is there is no fixed lot size, you can buy odd amounts of shares which means you don’t need to be locked into a huge position. Also the Forex market operates 24 hours a day, no after hours stock manipulation. Lastly no one can corner the Forex market, small shareholder won’t be manipulated by big brokerage houses. These factors make Forex a great place to invest and trade.
- There are a number of advantages that traders see when opting for Forex trading above other types. Many of these are purely financial.
- For example, there are zero commissions for those that go for the Forex route. That means no brokerage fees and no government fees.
- Traders are not hamstringed by pre-decided lot sizes. Trades are not limited to market hours, but instead run 24/7.
“You are never “stuck” in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, and/or close a trade if a trade is going against you (a stop loss order).”