benefits and advantages to trading Forex

benefits and advantages to trading Forex

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market:

Without commission.
Sun clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.
Without intermediaries. Place currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for pricing for a particular currency pair.
No fixed lot size.
In futures markets, lot or contract sizes are determined by the exchange. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your lot size. This allows traders to participate with accounts as small as $ 250 (though later explained why the $ 250 bill is a bad idea).
Low transaction costs.
The retail transaction cost (the bid / ask spread) is less than 0.1 percent under normal market conditions. The larger dealers, the spread can be as low as 0.07 percent. Of course, this depends on your leverage and all will be explained later.