Why Trade Forex?

There are plenty of good reasons to trade Forex, and if you have experience trading stocks or futures, you have a definite edge over the crowd. Let's take a look at why you should consider this market:

Huge Leverage
Incredibly, you get can 200:1 leverage on Forex pairs. In a mini account, $50 controls a $10,000 position! $500 controls a $100,000 position. This obviously means potentially huge profits. But what about the risk?

Limited Risk
With Forex, your stops are always honored, even on gaps. If you have a position on into the weekend and it gaps against you Sunday night, you will be filled at your stop price -- provided you have a stop in place. Plus, if your account should go to 0.00, your broker will automatically close out trading, so you can't possibly lose more than your margin deposit. If you've ever had a maintenance call from a broker, you'll appreciate this.

24-Hour Trading
If you just can't get enough trading out of your system during regular NYSE trading hours, you'll love the fact the Forex trades 24 hours a day, from the beginning of the Japanese session Sunday evening about 8 PM EST to the end of the US session on Friday at 4:00 or 5:00 PM EST. European bourses open at 3:00 AM EST, and the US session opens at 9:30 AM EST. The slowest periods are between 4:00 PM EST and 8:00 PM EST, between the end of the US session and the beginning of the Asian markets.

No Commissions/Low transaction costs
There's no question but that stock commissions have come down a lot, but with Forex, there is no commission -- your fee is the dealer spread. The spreads are small, usually about 4-5 PIPs. On a mini account, that's $4-$5.

Excellent Liquidity
This is an extremely active market, with $1.5 trillion traded daily in interbank market. Recently it has become wildly popular with traders around the world.

Tremendous Upside Potential -- And Fast
Because of the incredibly high leverage, you have the potential to double your investment quite rapidly -- in hours even. I'll show you a trade shortly to make this point.