During the 1990s there was a saying that to earn money in the stock market, all you had to do was wake up in the morning. This was because at that time the market was driven by technology companies and their owners and investors usually made millions at night.
Forex was also driven by greed. Everyone was making money from stocks. Nobody wanted the movement to stop. But it stopped. The big investment companies retired to lick their wounds, LCTM (Long Term Capital Management) filed for bankruptcy; Investors lost hope and their savings. which was a disturbing image.
However, everything has a happy ending. From the ashes of the stock market, the doors of wealth were opened so that finally everyone could enter and was called the “FOREX” currency market.
With $5 trillion a day, the volume of operations is about sixty times greater than the daily trading volume of the New York Exchange.
Traders quickly discovered the currency market and once again we began to hear stories about people who could not afford a hot dog two years ago,but became millionaires thanks to the foreign exchange market.
The yields were amazing. While the best stockbrokers and investors were making double-digit returns annually, young and astute currency traders were doubling their income based on a monthly basis.
Forex has increased in popularity in Africa in the past few years with different tales from investors both positive and negative.
Here below are five salient reasons why you should invest in Forex Trading
Forex market has the highest volume at a global level does not compare with other markets, such as the Stock Exchange or futures, whose little liquidity of action or another asset leads the trader or investor to liquidate their positions at lower than expected prices.
This would not happen in the Forex market, its great liquidity facilitates the entry and exit of any financial operation, so you can negotiate with the instrument you want, buying and selling currencies or international currencies, among others.
The more liquid a market is, the more opportunities you will enjoy for its great movement and perseverance in every action you take on any asset, the Forex market is extremely liquid, a natural characteristic for years.
If you are a true trader or retail or institutional investor with high volumes of operation, expert or beginner, you may know how the commissions work within the markets, which represent a percentage of what you trade.
Each market has its own rules and each investor must respect them and accept them, however, the Forex market enjoys the privilege that the commissions for each transaction are totally zero, yes, even if you do not believe it, they do not exist.
Although what you would pay for daily transactions only obeys to some spreads or also called currency margin, for example, in the case of transactions with currency pairs or currency pairs, the spreads vary from a pip, giving rise to low amounts in commission.
Profits within a bullish and bearish market
An advantage of trading within the Forex market is that absolutely all transactions include synchronising buying and selling of currency pairs, that is, if you buy in the currency pair EUR / USD means that you bought Euros and sold US Dollars.
This type of operation leads you to obtain gains in up and down markets, you only need a good strategy that gives you the best results.
Within this market you can trade in a safe and reliable environment, which indicates that the Forex is transparent, but do you know why? Because the billion dollar amount of capital involved daily prevents scams and frauds from developing.
You just have to be careful with the intervention of some brokers who offer you doubtful plans, or who may pose as brokers and flee with your money. stay alert and operate only with reliable brokers.
Within the Forex market you can connect at any time, request services of any kind and trade with any financial instrument, all during 24 hours and 5 days a week, with minimal conditions.
You also have high leverage, 1: 1000, for example, this factor allows you to increase your profits, but beware! because it would also affect you if you take losses.