The existence of advantages of forex has made forex (foreign exchange) trading recently become one of the many business opportunities that have been taken. Plus, forex trading is widely mentioned in various media, both digital and print.
Stock trading is also popular amongst traders, but between the two, forex trading is predicted to be more profitable. Hence why millennials tend to choose forex rather than stocks.
Although both types of investment are ‘high risk and high return’, there are many advantages offered by forex trading compared to other types of trading, including stocks. Technological advances also have an effect.
Less Capital and a Market that is Open 24 Hours are Advantages of Forex
Money or capital has always been one of the main factors in determining something. Even when deciding to trade. You can even use lower capital to trade in forex than in stocks. Even now, there are many brokers who offer capital with only US$ 1. Profits can be 100 or even 1000 times.
Meanwhile, those who want to trade stocks, require a large enough capital. Forex trading does not charge additional fees to its traders. Usually, they will only take advantage of the spread or the differences between buy&sell rates.
Meanwhile, for stockbrokers, usually, a commission will be deducted between 0.1 - 0.3% for each transaction, whether it is buying or selling. As much as possible choosing a broker, choose the best forex broker that has been regulated by Bappebti.
Forex trading is very easy to do even for a busy person. Because it is open 24 hours a day in 5 working days. It has its own standard for the 24 hour trading market, following forex world-wide regulations. You can simply contact the customer service if you need to trade.
Time is arguably less flexible in stock trading. The stock market will usually be open during office hours. Starting from 08:00 or 09:00 until evening. Of course, this is quite a hassle for office workers who want to trade stocks. The times will collide.
Sufficiently High Liquidity and Availability of Demo Account
Other advantages of forex trading are the high liquidity and trial account. This means that at any time you can withdraw funds for transactions at any time. The turnover in the market of forex can reach trillions of dollars/day, and that can be used for transactions. But in stock market, funds flowing into the stock exchange will be distributed among hundreds or even millions of shares every day.
Therefore, its liquidity isn’t as flexible as forex trading. You can find many forex trading platforms provide demo accounts or trial accounts with fictitious capital which is very useful for every beginner. You can simulate before making transactions with real capital.
This trial account is one of the advantages of forex that can also train traders to be even more observant in taking opportunities in the future after actually jumping. And this has been proven, many traders have learned it from this trial account.
Forex trading has low level of complexity so you can learn it pretty fast. Just imagine, when you’re trading in stock market, there are hundreds of companies that offer their shared. You will be needing a lot of time to learn to avoid losses.
But if you choose forex, it won’t be as complicated. There are only few basic things you must learn before you can actually start trading. You can also learn more through the Didimax forex broker.
Those are some of the advantages that you can consider before engaging in the forex trading world. By understanding the advantages of forex, you can choose according to your needs and abilities in learning to trade.
