Foreign exchange trading is viewed as an income source for many investors. Forex trading is not capital intensive. The web site forex trader’s ability to effectively manage their funds will dictate the potential income. Trading foreign currencies can be more profitable than stock trading.
1. Capital outlay is small
A minimum of USD250 is required to open an online account. A majority of brokers will offer both a micro- and mini-trading account. New traders can test out the market with a mini or micro account before committing more capital. For forex, there are no investment minimums. This is unlike other financial instruments such as futures, shares, options or bonds. USD1000. You can achieve a double in value with a $250 investment. The amount you can earn depends on how good your trading is and how frequently you trade.
2. Low transaction costs
The fees associated with the trading of shares are not payable by us. There are no broker fees to be paid. You can compensate them by using the bid/ask differential. It is basically the spread of the price between purchasing and selling. Difference in prices between buying and selling.
3. The trading can happen at any time.
You can trade forex 24 hours every day. Singapore, Malayisa and the Philippines have a Monday opening at 6am, with a Saturday closing at 6am. Trading hours can be set by anyone, regardless of whether they are professional or not. Trading forex can be done part-time or on a full-time basis. It’s not possible to do this when your trading is in other instruments.