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Advantages of forex online trading

forex forex brokers

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29 replies to this topic

#1
David_Warner

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There are a large number of benefits of trading forex online, below mentioned are just few of the many benefits one can avail.

  • The absence of a middleman helps in directly trading with the market which is involved in pricing of currency pairs.
  • Spot forex does not involve any lot or fixed size and give traders complete freedom to participate with the minimum trade size and invest as little as possible
  • The lower transaction cost is another lucrative benefit which makes forex trading so popular.
  • Forex market never sleeps and is an ideal option for those looking to trade for part-time or when they are free
  • The foreign exchange market is so huge and has so many participants that no single entity can control the market price for an extended period of time.
  • Unlike other financial markets, forex has no limitations on shorting currencies. A bear market term does not exist in forex and any investor can make or lose money here
  • Unmatched liquidity of forex trading makes it an attractive option for many. This makes it typically very easy to get into and out of trades at any time, even in large sizes.
  • The deep liquidity available in the forex market can help investors’ trade forex with considerable leverage (up to 50:1). This can allow taking advantage of even the smallest moves in the market.
  • Due to its global nature, forex is an easy way to gain exposure while avoiding vagaries such as foreign securities laws and financial statements in other languages.

The eight majors of forex trading

Unlike the stock market where investors have a large number of options to choose from, in forex there are just eight major currencies which provide the best undervalued or overvalued opportunities. These following eight countries make up the majority of trade in the currency market:

  • United States
  • Eurozone (the ones to watch are Germany, France, Italy and Spain)
  • Japan
  • United Kingdom
  • Switzerland
  • Canada
  • Australia
  • New Zealand

So, if wishing to try your luck, make sure you first learn the basics, practice through a demo account and then begin with real money, Happy Trading! To know more: http://alpari.com/


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#2
sidejob

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I totally agree with the first reason, without middleman the price is not as high as before and even more competitive it could drive a healthy competition between brokers when it comes to service and also cost like spreads or comission. This is why for overall cost online foreign exchange has advantage.


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#3
myregister

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At least we don't have to worry about don't have big amount of money, right now when forex becomes more "online" we can invest with small amount of bucks. Some brokers even allowed us to invest at around $10-$50. This means more people that can invest and join in this the most liquid market ever.


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#4
Decub

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At least we don't have to worry about don't have big amount of money, right now when forex becomes more "online" we can invest with small amount of bucks. Some brokers even allowed us to invest at around $10-$50. This means more people that can invest and join in this the most liquid market ever.

To trade in the market, there is actually little or nothing to worry about besides the usual learning to get the knowledge of how to do things aright. Forex is a place where you need a good understanding of how to make things done and how you can earn from the comfort of your own home and it is interesting knowing you can achieve this just with your PC.


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#5
sidejob

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Online forex trading gives us advantage for sure, we don't have to make a telephone and the spread is totally competitive for us too. If you can design a very good robot that would be work well for you then you can even trade million times in just few weeks. Online trading makes our trading faster which mean more profits or more losses.


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#6
benjamin

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Earn money from home - saving you from transport, accident, frauds,... many things outside. Is that the best advantage of online trading?


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#7
myregister

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I totally agree with you sidejob. No any unecessary cost again for us, we can simply trading and just in few seconds we can get profit or lose. It is simple and lowering overall cost for a broker to operate and for liquidity provider means competitive price that they could offer to everyone and of course with lower margin too.


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#8
sidejob

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That contains truh and also you won't get a broker to offer such a high fees trying to rip you off, if you phone them usually broker will add more cost but with online forex trading there are small chance they want to do it, also there are a lot of competitors so offering high markup isn't a good idea.


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#9
myregister

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Yes, lower fees is what coming up into my own mind after read advantages of online trading. Can you imagine if we still trade using phone, that is so much cost we must bear. Using internet we can press the cost to lower cost that we can imagine and simply gain more competitive spreads.


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#10
sidejob

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But we trade with phone right now, the only difference that we use smarpthone which use internet. Its medium change the cost for sure since it will be chaper than usual, also i heard that if you use traditional phone usually broker trying to markup with high spread and it is not really competitive.


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#11
myregister

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Using smartphone is one of the best way for people to trade, since forex become more online this way is become possible. Forex advantages including trading hours which is quite flexible than other kind of business, also forex become online business which means the connectivity playing imporitan part here, with its decentralized server forex for sure change itself


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#12
sidejob

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One thing which come up into my mind of course the cost of trading, before the spread is high and broker gain much more markup but right now they can't do that, forex is one of the most competitive market with trillions turnover daily, this increase the competition between traders, brokers, and liquidity providers to make profit and at the same time lowering the cost.


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#13
myregister

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Sure, cost trading is one of the thing which affected by forex trading through online services such as internet. The biggest advantage of foreign exchange through online services that we don't have to pay the bulky fees and also broker has lesser equipment to deal with the whole market, cost reduce so much and not to mention, it becomes more transparent and competitive.


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#14
obieze

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i dont think that there is much benefit on forex except when you are making profit on your trade that is when i will said that there is benefit, and as for allowing phone bet i think that it is the best and fast to trade on forex,as for me phone option is the best.
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#15
bigxy

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The benefit i found out from trading forex is that i am already paying my bills through it and the good part is that it had enabled me to utilize my free time into making money.


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#16
myregister

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Online trading is pretty much different than conventional trading, it seems that this is one of the best way for people from all over the world to trade, it requires less capital, it requires less costs and also it is faster rather than conventional trading, so this is why it is one of the most popular one.
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#17
bigxy

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In my opinion, online trading can only be the legit business available online however it is good if we can research over choosing the right broker before starting it.


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#18
Sininfinity

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One advantage is that you don't have to physically move anywhere to trade. Before internet era, trader had to physically go to a broker and ask a dealer to place orders. Now we do those things with few clicks. lol


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#19
sidejob

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One advantage is that you don't have to physically move anywhere to trade. Before internet era, trader had to physically go to a broker and ask a dealer to place orders. Now we do those things with few clicks. lol

Yes, i agree with it especially when we compare this to before when people need to stick phone into their own ears for over and over and over again, and you must keep like that for the sake of ordering one currency, but right now imagine that we can do that just by few clicks and that would be done.


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#20
myregister

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LOL yeah, you don't have to do that anymore. I wonder why people nowadays want to stick the phone into their own head like forever, i prefer to watch the terminal and see the market rise or down and just with few clicks i already ordered a position as LONG or SHORT and then in few minutes later closed it. Online trading makes conventional trading simpler and more efficient yet effective.


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