Forex is known as one of the fastest-growing industries in today’s era. The same is why more and more people are stepping into the niche with hopes of a high-profit generation. However, one central question that may arise in one’s mind as a beginner is: Is Forex worth trying, or is it nothing else but a waste of time?
Hence if you are also a part of those people seeking answers to similar queries, then look no further as you have already found the right article. Keep on reading, and you will introduce yourself to all the crucial information that will help you decide better. So without wasting time any further, let us dig into the content.
What forex trading is?
Before jumping into any advanced content, it is crucial to acquire an in-depth overview of its basics to support better understanding. And the case gets even more complex if you are a complete beginner.
Forex trading is similar to the buying and selling of securities and stocks. Yet the main difference it holds is that the forex trade is made in pairs such as USD/EUR or GBP/JPY.
When you make a forex trade, you sell one foreign currency to buy another. And the markup that you generate in this procedure is your profit or earning. Hence, for those of you searching for a short and straightforward answer for the theory mentioned above: Yes, the industry is worth considering when it comes to investment.
However, if you are one of those who are up for searching in-depth information about the topic, here it goes.
Reasons to consider Forex
No commissions to pay
The first and foremost benefit of choosing Forex is that you don’t have to worry about paying high sums of money as commission to the broker. Most of the retail forex brokerage houses compensate for these services through Spreads.
Hence you pay no transparent fees, no exchange fees, no government fees, no brokerage fees, and no other types of commissions. Isn’t it amazing?
No fixed lot size
The exchanges analyze lot or contract sizes in future markets. For instance, a standard-sized contract for silver futures is 5000 ounces.
Nonetheless, Forex works differently than this phenomenon. In forex markets, you are all allowed to trade smaller lot sizes or position sixes. Hence you get the ultimate opportunity of opening trades as small as 1,000 units.
Low transaction costs
Under normal market conditions, the retail transaction costs are usually less than 0.01 percent. And for more significant transactions, the spread is typically as low as 0.07 percent. Yet it depends on your leverage rate as well.
On the bottom line
To conclude, forex trading is a foreign exchange market worth trying for many reasons. For instance, it lets you enjoy low transaction rates, freedom from commissions, and works on low transaction costs.
However, join a regulated forex brokerage house to ensure profit maximization. For instance you can check icmarkets minimum deposit. Rest we wish you Good Luck.