Visiting another country would require you to change your money because the currency is different. This very basic situation is what constantly happens in the forex trading market.
Forex trading also known as Foreign Exchange Trading, Currency Trading, Spot Forex Trading, FX trading is just the simultaneous buying and selling of currency.
The trading happens over the counter through an electronic network of Banks, Broker Dealers and Hedge Funds which is actually has its advantages. One key advantage is that the Forex Market is open 24 hours a day 6 days per week. The hours are from Sunday starting at 5pm going to Friday at 5pm New York time. The market begins in Sydney, Australia and continues around the world to the New York, USA.
The whole trading involves also low transaction cost. The costs of each transaction is less than 0.1 percent when market conditions are fair. At larger dealers, the spread could be as low as 0.07%.
One more plus with forex trading is that there are no commissions. This can be further translated to no clearing fees, no exchange fees, no government fees and no brokerage fees. Brokers in forex trading are paid through bid-ask-spread method.
Another amazing advantage is that no single company can manipulate the market. This is due to the fact that the market is very big, with a lot of participants.
During normal market conditions getting in and out of trades is a fairly smooth process. You would not need millions of money just to get in. There are actually forex brokers that offer mini accounts that you can open with just $25 on hand.True ECN Brokers can be difficult to find. Here’s our website that may help.
In forex trading, you wouldn’t also need a middleman so you can trade directly without any hassle.
Lastly, there are freebies everywhere. Most online forex brokers offer “demo” accounts to practice trading and build your skills, along with real-time forex news and charting services. An example of a site where you can practice and even get a forex account is the IC markets, which can, without a doubt, help you earn money and become rich with forex trading.