No Commissions
No clearing fees, no exchange fees, no government fees, no brokerage fees
No Middlemen
Spot currency trading does away with the middlemen and allows trader to interact directly with the market.
No fixed lot size
Trader determines the lot size in FOREX. This allows trader to effectively participate with account of well under $1,000.
High Liquidity
With an average trading volume of over $4 trillion per day, FOREX is the most liquid market in the world. It means that a trader can enter or exit the market at will in almost any market condition.
Low margin, high leverage
These factors increase the potential for higher profit (loss).
A 24-hour market
A trader may take advantage of all profitable market conditions at any time. There is no waiting for the opening bell.
Online Access
The big boom in FOREX came with the advent of online (internet) trading platforms.
Not related to the stock market
Trading in the FOREX market involves selling or buying one currency against another. Thus, there is no correlation between the foreign currency market and the stock market.
Inter bank market
The backbone of the FOREX market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronics networks and by telephone.
No one can corner the market
The FOREX market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time.
No insider trading
Because of the FOREX market’s size and non-centralized nature, there is virtually no chance for ill effects caused by insider trading. Fraud possibilities, at least against the system as a whole, are significantly less than in any other financial instruments.
Limited regulation
There is but limited governmental influence via regulation in the FOREX markets, primarily because there is no centralized location or exchange.
