Reasons for Investing in the Forex Market
Available 24 hours a day
The forex market operates 24 hours a day, 5 days a week. When the banks in US are closed, the banks in Asia and Europe are operating. There is always somebody trading in the forex market at any time. Because of this round the clock liquidity, individuals could trade in the forex at the time convenient to them. Most individuals starting out would trade currencies in the evening while going to work during the day.
Trade from home
Online forex brokers such as xe.com and fxcm.com have enabled individuals to trade currencies from the comfort of their homes. It is a work-from-home opportunity for some people.
High leverage
Some brokers allow up to 1:400 leverage. This means you get $400 in your trading account for every $1 invested. High leverage provides you with the opportunity to make huge profits. It also means huge losses if your trade goes the wrong way. Lots of experienced traders view the high leverage as dangerous.
Smaller scope
You can focus on a few selected currencies in the forex market instead of thousands of companies in the stock market. This makes your research much more easier and less time consuming.
Little of no inside knowledge
Exchange rate fluctuations are caused by actual demand and supply of money as well as anticipations of global macroeconomic conditions. Significant news is released publicly. So everyone in the world receives the same news at the same time.