A forex trader can earn income from one source within an investor’s portfolio. An investor’s forex trader needs to find this have a money-management strategy. It allows them to make an unlimited amount of income. Trading foreign currencies has many advantages over trading shares.
1. Very little capital is required.
For opening an account you will need to deposit USD250. Forex brokers often offer trading accounts, which can be either’mini-or’micro. For beginners, this will let them get to know the market first before they invest further. Forex trading, contrary to futures or bonds, requires minimum USD1000 investment. If you are skilled enough and trade regularly, even a modest amount like USD250 will allow your trading to grow by as much as 50% per month.
2. Low transaction fees
Trading shares is free from clearing fees, stamp duties and other fees. Although we have to trade through brokerages, there are no broker fees. The compensation they get for their work is the bid-ask Spread. The difference between selling and purchasing prices.
3. All hours are available for trades
Forex and foreign exchange markets are open twenty-four hours a day. Residents of Singapore and Malayisa can open the Forex market at 6 am on Monday mornings, closing at 6 pm on Saturday mornings. It is accessible to professionals and home-makers. It is possible to choose your trading hours that work best for you. Forex trading can be started part-time before becoming full-time. Trading in other instruments will prevent you from trading forex.