“Forex industry is best,” “I am so happy to be a forex trader,” you should also switch to forex trading” These are some of the statements you must have heard if you know someone who belongs to this industry.
Having millions and billions of satisfied traders worldwide, the forex or foreign exchange market is considered one of the world’s most profitable industries.
But why is so? What makes thousands of people switch to this industry each year? If you are also searching for answers to similar questions, keep reading. This article will elaborate on all the reasons that make the forex industry one of the best industries in the world. Let’s start
Reasons to call the forex industry “Best.”
Low commission rates
Forex is one of those fortunate businesses globally that holds comparatively fewer commissions and brokerage.
Most brokerage houses earn their commission from spreads between forex currencies. Hence the trader does not have to worry about paying separate charges or fees. Read more about double bottom pattern
No central exchange or regulator.
The foreign exchange market is an over-the-counter market. Hence there is no central exchange or any regulator for the market. However, central banks of various countries occasionally intervene if needed ( only in special cases).
This low level of regulation aids to keep the cost as low as possible. Orders are placed directly with the brokerage house that excited them on those own, without involving any third party. In addition to, low reregulation of the market is also helpful to take short positions.
A wide range of pairs to trade
Unlike other forms of digital trading, forex obtains a wide range of currency pairs. It holds 28 major currency pairs, including eight significant and powerful currencies of the world.
Criteria for choosing a currency pair can be convenient timing, economic development, or volatility patterns. Hence, if you are an individual who loves volatility, you can easily switch from one currency pair to another.
Low capital requirements
Another significant advantage that makes the forex industry best is its requirements for low capital. That means one can start forex trading with a small sum of initial capital because of tight spreads in terms of pips.
Moreover, the availability of margin trading with a high leverage factor is nothing else but a plus point. While high margin trading comes with its risks, it also eases the path of getting more profits for a trader.
Ease of entry
There are many foreign exchange indicators you can reply upon if you are new to the world. These indicators help you learn and minimize the risk of loss, paving a smooth path for new traders to join the industry swiftly.
Final verdict
To conclude, the forex industry is widely known as one best trading niches in the world. But why is so? The main secret of success lies within all the benefits it provides to its traders.
For instance, it holds low capital requirements and offers various currency pairs to trade. You can find more of these reasons in the above content. So please read carefully.
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