1. Easy Access
For beginners looking to get into financial markets for the first time, the thought of entering the big bad world of Wall Street brokers and big-shot traders can feel threatening. The good news is that this isn’t The Wolf of Wall Street: You can open a trading account with as little as $100 and make trades 24 hours a day from your cell phone. More than $5.3 trillion are traded every day in the forex market. That’s a trading volume about 53 times greater than that of the New York Stock Exchange. There’s room for everyone.
You know you can easily open an account. But what do you do once you want to make trades? Trading crypto and other currencies has its own specific culture and jargon, and understanding basic market dynamics is critical before you get started.
Thousands of great sources for free or paid education are available. A source like Babypips is a great place to start. And we don’t mean to brag, but we can help you out, too.
To make money in any market, you need a market that is constantly moving. This volatility in the market provides more opportunities for initiating trades whether buying or selling. Forex trading, especially with the expanded role of cryptocurrencies, allows for more movement in the market which makes trading more engaging, exciting and potentially more profitable.
What’s better than investing some of your own money to try make more money? Using someone else’s money to do the same thing. Forex markets allow traders to leverage small deposits of their own with additional funding from brokers to increase potential returns. This leverage can often be as high as 100 to 1, meaning that for every $1,000 deposited you can make trades of up to $100,000. This leverage is much higher than you’d find in the stock market.
Forex markets and trading platforms are some of the most advanced in the financial industry. As cryptocurrencies such as Bitcoin, Ethereum and Dash have gained a foothold in the markets, technology has rapidly evolved to incorporate them into traditional forex platforms. When you add a growing mobile app market for forex traders, the technology landscape makes currency trading an appealing choice.