It can’t be denied that Forex trading has gotten the attention of many aspiring traders from all walks of life. Hailed as the biggest financial market in the world, the Forex market has enormously grown in the past few years.
According to a report by the Bank of Settlements (BIS) published in September 2019, the daily global Forex trading turnover has jumped to $6.6 trillion from $5.1 trillion three years earlier. That’s equivalent to a 30% increase between two periods. Furthermore, the report showed that the U.S. dollar remained to be the most-traded currency during the period.
With that being said, the growth can be attributed to the number of interesting participants continuously growing over the years – from Southeast Asian countries like Malaysia, Indonesia, Vietnam, to African countries like South Africa, Nigeria and Kenya.
Here some of the reasons why many have been taking notice:
The Forex market is known as the most liquid market which is an important factor for traders and investors globally. A liquid market environment allows huge trading volumes to occur with very little effect on price. When a market is illiquid, it is difficult to buy or sell assets in a timely manner. That in turn can be risky for any market participants.
Liquidity is something the Forex market can offer given its large daily trading turning of $6.6 trillion.
The Forex market functions 24 hours a day, which opens up a great opportunity for anyone who wishes to trade on a part-time basis. Whether in the morning, afternoon, or evening, the market is within your reach. The flexibility Forex trading offers is something you won’t experience in trading other financial instruments like stocks – which is open only for 8 or 9 hours.
No Intervention from Big Entities
This market is so huge with so many participants that no entity can corner it. This means prices are not controlled by anyone or any entity.
Low Transaction Costs
Trading with little costs is clearly an advantage. Unlike other markets which require you to pay several transactions fees, the Forex market charges you with very little costs for trading. A lot of brokers today, like JP Markets, assure traders with minimal fees just so they can grow their wealth more.
Low Capital Requirement
In Forex trading, you can start with as low as $50. This, again, is something other investment instruments like stocks and mutual funds don’t offer. The Forex market and the brokers in it have created such a great opportunity to diversify people’s investment portfolio without breaking the bank.
If you ask us if Forex trading will continue to flourish in the future, our answer is a resounding yes. The future looks really bright for this market, and the points we mentioned above are only some of the reasons why you should be part of it too. Now, it’s your turn to make a decision.
JP Markets is committed to providing only the best trading experience to its clients. We understand the value of education in Forex, that’s why our website offers an education section where traders in all levels can learn from beginners to advanced topics. Click here for more information