Friday, July 8, 2011

Advantages of Forex Trading Compared to Other Investment Programs

There are many investment options that you can do. each program has advantages and disadvantages of each. But as the saying goes, don't put your eggs in one basket, you also need to invest your money in several investment programs, with the percentage that suits your strategy of course.
Here are some of the advantages offered by the forex trading which can not be offered any other investment:

1. Start-Up/Capital required is relatively small.
Indeed, once the required capital can be quite large (up to 10,000). But now capital needed only $ 5000. Compare with other investments such as stocks that require at least $ 20000 of capital or investment real sector which is usually more than USD 50000.

2. Anywhere, anytime and anyone can join.
Yes, investments do not recognize castes. Likewise with forex trading. Whoever you are, merchants, employees, a housewife or even once a farmer can join. And more great again with the advancement of the internet, you can trade anywhere without having to go to the relevant stock exchange or call your dealer directly. It definitely saves your time and cost!

3. Return on Investment is highest than other investments.
Are there investments that can offer a return to infinity? Forex can do it!

4. Real time prices that you can access at any time free of charge.

5. High liquidity.
This means you can always buy or sell currency that you want traded and there is no term fail to deliver here. When you take action to buy, there are always others who will sell it to you and conversely. This occurs because the scope is the world stock forex investment that are connected to each other. Unlike the local stock exchange where the transaction takes place only on the stock, so it can happen fail to deliver events.

6. There is a demo account that you can have for free without paying a dime! If you are new to forex, it will really help you because the price listed on the demo account is the same as the price actually occurred in the market.

7. 24 hours a day and 5 days a week hours trading.
There is no night or day in the world of forex trading. The market lasts for 24 hours a day starting from the Asia to European and American markets. Compare with shares that are only open in office hours or commodity market which is only open in the morning until noon. If you are an office worker, you can trade forex trading at night and does not interfere with your working hours.

8. Investors act actively in the investment.
Unlike other investments where investors can only entrust a third party managed funds (mutual funds, insurance, deposits, etc.), the forex trading is you who decide when and how much you are going to invest, to take action to buy or sell. Now your investment depends on yourself and not to others.

9. Security and confidentiality is assured.
Although transactions conducted via the Internet does not mean security and confidentiality of information and funds are not guaranteed. Broker forex trading provides data encryption in the transaction and your funds is stored safely in segregated accounts at the forex broker if you do it legally.

10. Online reporting and transaction.
It first forex trading is done through telephone and written report of your transactions will be sent via email or even post every month. But now with internet access, can you access report of any transactions you done whenever you want without having to wait for the part of the report to your broker.

11. Leverage offered by 1:100
This means with one part that you remove, you can buy or sell as many as 100 parts. This is the excess of the margin trading where it takes is only guaranteed to buy or sell the required items. In forex trading is implemented with a capital of $ 100 then you can buy the dollar as much as $ 10,000 and also conversely to the selling action. High leverage and low margin can basically increase the benefits or conversely loss of you. Thus you should consider the investment risk and your investment plan.

1 comment:

  1. I wish I had the ability to have any capital to invest in anything at all.

    ReplyDelete