The various advantages of forex trading indeed attract the attention of new traders. This is because they think that with forex, profits can be made in a short time.

But in reality, forex trading cannot be done carelessly because you can fall into failure and end up bankrupt. You need to understand various forex techniques and strategies in order to make a profit.

However, you also need to know what advantages of forex trading that make many new traders interested in entering the world of forex which will be described below.

One of the Advantages of Forex Trading is the Small Capital Required

Money or capital has always been one of the main factors in determining something when deciding to trade. You can start trading with fairly small capital in forex.

Even now there are many of the best forex brokers who offer capital for only 1 USD, but the profit you may gain can be a hundred times bigger than your initial capital. Meanwhile, in stock trading, you may need a large amount of capital.

In forex trading, the brokers don’t charge any additional fees. They usually take advantage of the spread from the trading. Meanwhile stockbrokers, usually will cut commissions between 0.1 - 0.3% for each transaction, be it when buying or selling.

Forex Trading Market Open 24 Hours and Has High Liquidity

This forex trading market activity is quite easy because it is open 24 hours a day in 5 working days. This 24-hour trading is also standard worldwide, following world regulations. So if you have time to trade, you can contact CS.

The stock market will usually be open during office hours. It’s quite inconvenient for office workers who want to stock trading because their time will collide.

Another advantages of forex trading is that it has fairly high liquidity. This means that you can withdraw funds for transactions at any time. Almost every day the turnover of funds in the forex market can reach trillions of dollars per day, and it can be used for transactions. 

Meanwhile, for stocks, the funds flowing into the stock exchange need to be distributed to hundreds or even millions of stocks every day, so its liquidity is not as flexible as forex trading. 

The Existence of a Demo Account and a Fairly Low Level of Difficulty

To attract more traders, brokers are competing to give the impression of being trusted. That's why there are now many forex trading platforms that provide demo accounts or trial accounts with fictitious capital, such as the Didimax forex broker.

This, of course, is very useful for novice traders. You can learn on how to trade by using ‘trading simulation’ before using your real money. This trial account can also train traders to be even more observant in taking opportunities in the future after actually jumping in.

And this has indeed been proven, many traders have learned from this trial account. Another thing that makes many traders have forex is the low level of complexity.

Just imagine, when investing in stocks, there are more than 500 companies that offer their shares. You need a lot of time to investigate one by one in order to minimize losses.

Especially if you are a beginner, of course, there will be many other things that need to be learned. However, if you choose this kind of trading, it won’t be complicated like stock trading. There are only a few types of currencies to choose from.

When you jump into the world of forex, make sure you know the risks too. Don't just hold on to the advantages of forex trading, because you can suffer losses because you are not careful.