Forex trading can be considered as one source for income within an investor’s portfolio. The FXCM Markets trader must have a strategy and money management system that allows them to make a minimum capital investment. This means that they can earn unlimited income. When compared with shares trading, foreign currency trading has several advantages.
1. It takes very little capital.
A minimum USD250 deposit is required to open an account. Forex brokers usually offer trading accounts that are either’mini- or’micro’. This will give beginners a chance to experience the market before investing more money. Contrary to options, futures and bonds, forex trading requires a minimum investment of USD1000. Even a small amount of USD250 could allow you to double that amount within a month depending on your skill and the frequency of your trades.
2. Low transaction costs
We do not have to pay clearing fees, government stamp duties, or other fees when trading shares. Even though we need to trade through a brokerage, we don’t have broker fees. They receive a bid-ask Spread, which is a compensation for their services. The difference between the selling and purchasing price.
3. Trades are possible at any hour of day.
Forex and fx markets open 24 hours a week. If you are a resident of Singapore or Malayisa then the market opens at 6 AM on Monday mornings and closes at 6 AM on Saturday mornings. The market is open to both home-makers and professionals. You can pick your trading hours to fit your schedule. It is possible to start forex trading part-time, before you take up full-time. You won’t be able trade forex if other instruments are being traded.