There have been many trading companies available in the market. Every company has their key points that draw the attention of the enthusiasts in the market. But it is impossible to have everything pro of a company. Such a successful trading platform is Forex. Forex has its strong and weak points as well. This FBS trading review would give you a clear idea about this.
Here is a list of the Pros and Cons of Forex Trading
PROS: Some characteristics make this trading platform lucrative and alluring-
1) Easy Access: It is one of the most popular trading platforms of this time. A trader can get their account built in 1-3 working days. And they can start trading with smallest £50. Through this online platform, the trader can have access to many things. They can track the real-time marketing prices, tools, strategies and price charts. They can trade through the brokerages online.
2) 24*5 hours open: The Forex trading platform is open for 24 hours. It is also open for 5 consecutive days a week. The traders can make their schedule and include this trading platform accordingly. In this feature, it is far better than many other available trading platforms across.
3) Availability of the Leverage: For small gains in trading needs available leverage. Amongst all the trading platforms, Forex has the greatest sources of leverage. It depends on the place from where the traders are operating. They can even have access to the margin of leverage of 100:1. Even more than this ratio is available for the initial trade investors here in Forex trading.
4) Super-Fast Returns: Forex is a very fast moving market with huge potential of liquidity. The higher leverage always increases the traders quick and valuable return. In other markets, the investors sometimes have to wait for a longer time to get return. This is a very potential benefit that attracts more traders to invest in Forex platform.
5) Short Selling: Compare to the risks, Forex provides a simpler short selling currency. Their rule is to but of sell currencies in pair. That means in exchange of 1 currency buy, there is a currency sell. And there is no associated borrowing between.
6) Liquidity: Forex by volume is the largest global market of trading. In major currencies, it has considerable amount of liquidity for trades. It is perhaps the most attractive feature of the Forex Trading platform. It entices most of the investors enter into this foreign exchange market.
7) Strategic Technology: Working in Forex forum is simpler than other markets. Here, the investors can draw profits on a frequent scale. That only needs the technological analysis of the price charts. It depends on the history of price and market ideas of supply and demand.
8) Automation Process: It has automation strategy for the protection of the investors. After study, the traders are capable of setting up programming entry and limit prices. In advance, they can set up automated trade through stop-loss strategy. It helps the intelligent traders to know important things or advantages of everyday swings and latest shifts of the market.
9) Easy Tax Rules: For keeping the foreign trading going on, the tax rules need to be flexible. In other platforms, the users might need social tabs for their term deposits and returns. Forex has an easier tax reporting.
10) Besides, there are -limited numbers of fees and commissions on trading in this platform.
CONS: Here are the limited cons that are identifiable in this Forex trading forum
1) Disadvantages of Small Traders: Financial institutions and banks fund the bulk trading. Hence, they have an upper hand in controlling the price movements along the market. This makes the small scale investors get negligible profits. Also, the investors always need to be alert about the fast changing conditions for market to keep profitable exchanges.
2) Volatile Nature: Since all trading markets can go down, there is no difference in the Forex market as well. And such volatile nature always affects the small scale investors as well as the shark tanks.
3) Loosened Regulatory Protection: Since there are the Pros and Cons of Forex trading, one has to analyze thoroughly before investing. On Forex, the trades have no centralized exchange. Sometimes, the oversight of regulation can turn limited. SO, the investors need to have a ‘due-diligence’ enquiry on the reputation of their broker. And this should be the process before sign up.
4) Also, little residual returns on Forex make the investors step out from trading here.
With a handful of cons common to all trading market, Forex has become one of the global foreign exchange investing market. With the three essential Ds- Discipline, Desire along with Dedication, one can be the ultimate gainer here.