Variety of Other Investment
Excess of Forex Compared Variety of Other Investment
Currently, forex trading is increasingly often mentioned, both in print, television, and internet. The perpetrators of trading also more and more. Why? In fact, the world of forex trading has a variety of advantages that can not be served by various other investments. Here are 11 points of excess forex than any other investment. Technological advances allow the emergence of several advantages that greatly facilitate the activity of investing.
Some simple questions are often asked by new investors before starting investing in forex trading is “Why should I invest in forex?” and “What are the advantages of forex compared to other investments?”
This information is presented to answer some of the above questions. Here are 11 points of excess forex that is not offered by other investments:
1. Return on Investment (ROI) is highest compared to other investments.
Is there an investment capable of offering returns to infinity? Forex trading can do it. Surely this is aligned with your consistency and your strategy of adding profits gradually.
High Liquidity means you can always buy or sell the currency you want to transact and there is no term failover. When you take action, there are always others who will sell it to you and vice versa.
Privileges of this forex occur because of the scope of investment in the world of exchanges that are connected to each other. In contrast to the local exchanges (ex: BEI) where transactions only take place on the exchange only, so vulnerable event of the handover failure.
3. Capital forex trading is relatively very small.
Compare the advantages of this forex with other investments, such as shares, require capital of at least 20 Million Rupiah. Or compare with real sector investment which usually takes more than 50 Million Rupiah. Although once forex trading capital is also quite large, now in some brokers with a capital of $ 1 you can already participate in trading. Not only that, there are even brokers provide capital $ 5 for free when you will open a real account.
4.Trading hours 24 hours a day and 5 days a week.
There is no word night or day in the world of forex trading. The market runs for 24 hours a day starting from the Asian market to European and American markets. Compare with stock and commodity markets. The stock market is only open in office hours, while the commodity market is only open in the morning until noon.
If you are an office worker, the advantages of forex in terms of time is certainly very profitable. You can trade forex trading at night and do not disturb your working hours.
5. In forex, anyone can join and run their trading activities anytime and anywhere.
Yes, investment does not know caste. So also with forex trading. Whoever you are, a merchant, a worker, a housewife or even a farmer can join. More great, with the advancement of the internet world, you can trade anywhere without having to go to the exchange or call your dealer directly. This can definitely save you time and cost.
6. Investors are active in their investments.
Unlike other investments where investors can only trust funds managed by third parties (mutual funds, insurance, deposits, etc.). One of the advantages of forex is you alone can determine when and how much you will invest by buying or selling.
7.Real-time prices you can access at any time for free.
Starting from platforms, indicators, quote prices, to running news, everything is obtained for free. Even without opening a real account and making a deposit, you can also get all the advantages of forex facilities, because the broker also provides a demo account complete with all the tools needed for trading on a real account.
8.Available demo accounts that you can have for free without paying a penny.
One of the advantages of forex is the availability of demo accounts. If you are new to the world of forex, this will really help you because the price listed on the demo account is the same as the price that actually happened in the market.
9. Leverage can reach 1: 500.
Leverage can be interpreted as the proportion of loans provided by brokers to traders, based on the capital they provide. For example on forex trading is implemented leverage 1: 500, then with a capital of $ 100, you can buy dollars as much as $ 10,000; and vice versa for selling.
High leverage and low margins, basically can increase profits, but can also vice versa, resulting in losses. Therefore, you should consider the risks and your investment plan well in order not to wallow in trading with high risk level.
10.Online reporting and transaction.
Indeed first forex trading is done by phone and written reports. The results of your transaction will be sent by email or even post every month. In its development, the advantages of forex supported by internet access, and in the end, you can access transaction reports anytime without having to wait from the brokers to report it to you.
11. Security and confidentiality are assured.
Although transactions are conducted over the internet, it does not mean the security and confidentiality of your information and funds are not guaranteed. The broker provides transactional data encryption. Meanwhile, your funds are also securely stored in a segregated account if you do it on a legal broker.
Obviously, that many of the advantages of forex that does not exist in other investment models. Market liquidity and active time can provide ease, while capital and demo account holdings are an advantage that offers opportunities to retail traders. However, there are also risky points, such as leverage and the active role of investors in managing their own investment. To deal with it, you can consider it objectively and tailor it to your investment objectives.