Currency trading is a huge market that is globalized all over the world. Trading of money takes places between two countries. The speed of money transfer is very fast and money is transferred safely from one location to another location. You can get foreign currency and trade them through forex trading.
Why choose currency trading over stock, real estate or futures trading?
The currency trading advantages are speed, liquidity, commission-free transactions, increased safety, short-term trading and great earnings. Let's study each of these advantages in other trading systems:
- Speed: Currency trading is instant due to a large amount of transactions while future trading implies a longer time to trade certain commodities, agricultural products, financial instruments and goods (contracts need to be written and signed)
- Stock traders must pay brokers a certain fee for each transaction made. The brokerage fee is available for all futures transactions, but not in the case of currency trading. In currency trading brokers earn money by studying and profiting from the difference of price between sold and bought currencies.
- Liquidity: The currency market is opened non-stop, anywhere in the world giving currency traders the chance to trade whenever they find the opportune moment and prices. This is a characteristic attributed only to currency trading.
- Safety: while other trading systems are based on speculation, on the fluctuation of price, on slippage and market gaps, currency trading is controlled with the help of built in safeguards that limit slip-ups.
- Short term trading, like currency trading, is more efficient for profit making than long term trading.