Why Trade FOREX at FOREX-Earning

The benefits of FOREX Trading are numerous, so we will begin to cover some of them here to educate the potential FOREX trader. The main reasons to trade FOREX rather than other types of trades like stocks, shares or commodities are mainly profit potential, stability, limited trading restrictions, ability to day trade or trade long term, and no commissions or fees charged. We'll look at each of these areas in more depth below. Let's start with a brief introduction to Foreign Exchange.

Valued at over $3.2 Trillion Dollars of trade volume per day, the FOREX is the Most Traded Market in the World. The sheer volume of FOREX creates huge profit potential and also helps to facilitate price stability in most market conditions. Almost 85% of all currency transactions involve the FOREX major currency pairs, thereby making your trading investment extremely stable. The volatility with the major trading currencies in FOREX is less than 1% on a daily basis as opposed to maybe 5-10% with stocks. Where else can you find that type of stability and nearly unlimited profit potential?

In FOREX, traders can also trade on their own Schedules and quickly respond to changes in the FOREX Market. FOREX is a true 6 day a week, 24-hour market, open continuously from 5:00pm ET on Sunday to 5:00 pm on Friday. There are three distinct trading sessions in the US, Europe and Asia, so traders can trade on their own schedules and respond to breaking news around the world whenever they see fit.

FOREX has very few restrictions including No Short Selling Restrictions. In FOREX as in other areas of finance (stocks, shares, commodities, etc.), short selling is selling something that one does not yet own. FOREX trading always involves buying one currency and selling another, so opportunities abound due to different trading pairs. With 7 major currency pairs comprising most FOREX trades done each day, FOREX traders can easily trade in a rising or a falling market, giving them more than ample opportunity to accommodate their particular trading style. There is no Zero Uptick Rule in the FOREX Market, or any other restriction for that matter against shorting a currency, thereby creating a much greater chance for a profit. Whereas outside of the FOREX Market this profit potential is limited by the SEC Rules governing other the types of trading.

FOREX allows traders to keep 100% of their Trading Profits. Good FOREX Trading Platforms like Easy FOREX charge no commissions or transaction fees. The cost of FOREX trading to the trader is built into the bid/ask spread. The profits to both the trader and the dealer come from the spreads, so there are never any fees for anything else. A good trading platform will also offer free access to real-time quotes, FOREX News, FOREX Charts, FOREX Technical Analysis, FOREX Research, etc. Usually dealing spreads as low as 3 pips (.0003) are available in Currency Trading. Even at a penny ($.01), the bid/ask on a stock trade is 30x greater, in addition to the brokerage commission, while in the FOREX Market the spread is determined by the 4th decimal point.

FOREX offers massive Profit Potential by Margin. The FOREX Market offers much more leverage than stocks or futures without the interest and brokerage fees incurred by those types of trades. This can go as high as 200:1 Leverage in your FOREX trading, and special terms are available to frequent, high volume traders. Obviously with that much more buying power, you can increase your total return on investment with less cash outlay and risk involved. If you're wondering why that is, like we stated earlier, the volatility with the major trading currencies is less than 1% on a daily basis as opposed to approximately 5-10% with stocks. Because of this inherent stability, there is less chance of market collapse or general volatility and greater trust, giving traders more opportunities to earn by margin.

When dealing with margin, it is important to know that you can only lose the amount you're willing to risk in your FOREX account at any given time. You may profit unlimited amounts, but you never lose more than what you initially risked and invested. Increasing leverage or margin does not increase the initial amount risked, and Guaranteed Stop/Loss rates and general Freeze and Trade rates are also available. With $1,000 cash in a margin account that allows 200:1 leverage (.5%), you can trade up to $200,000 in speculative value. Remember, the word "margin" is defined very differently in FOREX than in stocks.

In stock trading, trading on margin means that a trader can borrow up to 50% of a stock's value to buy that particular stock. This can be a costly move to the investor because he/she must pay interest to the brokerage firm for the amount borrowed. This is not the case with FOREX trading. Again there are no fees involved, only the spread. Yet only the amount the trader is willing to lose in the trade is at risk, while the leverage can be up to 200%, thereby allowing for a much greater profit potential.

So to sum up, I think it can be easily seen that the benefits of FOREX Trading clearly outweigh those of other types of trading for many, if not most investors around the world. There is clearly much greater potential, flexibilty, stability, and freedom to suit all kinds of traders and styles, and there are far fewer restrictions and up front or hidden costs. Please continue to read throught the rest of our website to learn more about FOREX. We hope this article has helped to show why FOREX Trading can be the best option for traders, and we hope to educate you more and lead you to the right resources to make your FOREX experience successful.