There are many reasons why stock traders get into the forex market place. The most obvious reason is the return on investments and the speed at which you can grow your account. Typically the forex market is more volatile than the the stock market and brokers tend to offer leverage on accounts ranging anywhere from 20:1 to 500:1. For more information about leverage, visit What is leverage?
Forex Never Sleeps!
You are able to trade during any different countries’ business hours. There’s always an open market, 24 hours a day, 5 days a week. There are no set exchange hours when you, as a trader, can be trading currencies. So there is almost always an opportunity for you to buy or sell currencies!
Go Long or Short!
Unlike most other financial markets where it can be difficult to sell short, there are no limitations on shorting currencies. If you think a currency will fall, sell it, if you think it will rise, buy it!
Low Trading Costs!
Unlike many CFD or ETF brokers, forex accounts have very competitive low commissions, and extremely tight spreads. There are no hidden markups from our liquidity providers, and you trade the direct quotes!
Unmatched Liquidity!
The Forex market is a $5-trillion a day market, that is getting bigger everyday! Most of the trading happens with only a few currencies, and there are so many traders! This typically makes it easier to get in and out of trades, big or small, at any given time.
Available leverage
The deep liquidity available in the Forex market allows you to trade with considerable leverage of up to 50:1 with Canadian brokers and up to 1000:1 with internationa; accounts! This gives you the opportunity to take advantage of every move in the market! Even the smallest of moves opens up a multitude of opportunity to make money! Though, keep in mind that leverage of this amount can go against you as well. There is just as much opportunity to make money, as there is to lose it.
International exposure
As the world becomes more global, investors are hunting for more opportunities in more places. Forex is a great way to gain exposure and invest in other countries, while avoiding vagaries such as foreign securities laws and financial statements in other languages.