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Do you wish to make profits? Are you thinking of investing? Are you wondering whether to invest in stocks, bonds or currency trading? If yes, then don’t worry! This article will help you invest in the right market and choose the right investment tool.
Stocks and bonds are the two most traditional investment methods to make profits. However, over the years forex has made its place as a hot market to raise capital with low risk and high returns. The high-value proposition is attracting investors worldwide to engage in forex trading.
The Forex Market
Unlike stocks that offer ownership stake and bonds that are interest paying financial investment tools issued by a company, the forex market works differently from the two. In forex, you trade currency pairs. The key to ensuring profitable currency trading is to research currencies of different countries and their economic trends and then formulate a good investment strategy accordingly.
Now let’s take a look at how trading forex is different from stocks and bonds:
Commissions
In the bond market, trading through a bond broker means that you will have to pay a commission to the broker on the purchase of every bond. However, when you trade in the forex market through a forex broker, you don’t have to pay a commission; instead, the forex broker is remunerated through a bid spread on every trade. This enables you to take more on transactions as compared to bonds without a negative impact on your returns.
Liquidity
Whether it’s the stock market or the bond market, the forex market is a lot more liquid as compared to both. With more than three trillion dollars volume every day and the power to buy and sell whenever you want, you can engage in several profitable trades online.Furthermore, if you are trading forex online, you can also set automatic close position controls. It automatically closes your trading position at
Furthermore, if you are trading forex online, you can also set automatic close position controls. It automatically closes your trading position at the desired profit level as stated by you and even when a trade is going against you. This cushions you from loss.Outstanding Leverage
Outstanding Leverage
Professional forex traders acknowledge the leverage they enjoy in this trading market as compared to the stock market. When trading forex you can control a large total contract value with a small deposit margin. The forex market gives traders the leverage to raise capital while keeping the risk low. For example, a small margin deposit of $50 with a leverage ratio of 200:1 enables you to engage in trades of $10,000 worth of currencies.
Freedom to Go Long or Short Anytime
Currency trading is more flexible and is not bound with as many limits and regulations as stocks trading. Forex traders can go long or short anytime, anywhere.
More Trading Hours
Since there is no centralized exchange in forex trading, it can be done 24/7 for 5 days a week. It is only closed on the weekends. This offers investors better opportunities to trade as compared to stock and bond markets that have limited trading hours.
So, choose a wise financial instrument to engage in profitable trading today!
Start trading with your favorite IMMFX broker right now. IMMFX offers Demo Account so you can play and learn without spending a cent. For more details, please visit IMMFX Demo Account.
