Saturday, August 2, 2008

Why Choose Forex to Trade

Forex trading brokers and individual forex traders constitutes only 2% trades of the actual forex market. But by virtue of the size of the forex market, it is a huge sum and also the contribution of individual traders is always growing since the introduction of online forex trading. Most novice and expert traders today prefer forex trading over other forms, why? Because forex trading holds some advantages over others.

In stock trading, time and place are so powerful factors that they can completely brighten or darken the future of the traders. The market is volatile with ups and downs of individual stocks or whole market. Forex market is more liquid, without time period and regional limits; moreover there is actually no fall in price of currencies, only adjustments in exchange rate with other ones. Futures and options are always good to limiting the risks, but they needs excessive monitoring and planning, time and more money; there is also commission and exchange fees involved in futures trading. For most investing in real-estate is the first option, but as with above instruments it requires planning and searching, lots of money and often luck for huge returns.

For most the safest way of investing is in savings accounts and certificates of deposits. They are good, but takes enormous time to profit, more over the investor often lack control over his money and the lesser interest rates make them less attractive for young people. Bonds and annuities often provide good profits but the trader lacks control over his money and also there is always a risk involved. Compared to all these investments, forex trading needs less money and lesser time period to profit. It can be practiced for both short-term and long-term profits, and the trader always directly controls his or her money.

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