Advantages of Forex

Even in the gloomy financial outlook during the global recession we find ourselves in today, there is one market that maintains its rank as the largest market place in the entire world. Indeed, the Foreign Exchange market, or Forex for short, is the world market in the most literal sense of the word. It is here, which is everywhere, that brokers actively trade one nation’s currency for another. The advent of the Internet has made this global market accessible to anyone who can get to an internet connection and a computer. The currency market is powerful because the nature of currency is liquid. Even if the value of a nation’s currency is low due to hyperinflation or the effects of a recession or local depression, the currency in question still has value. If a currency has value, it is still worth trading, even if it is placed lower on a broker’s wish list.

To give you an idea of how large the daily volume of the Forex, look at any report on the Internet or in a financial newspaper, and you’ll find an astounding figure. The Forex markets have been in their current form and fashion only since 1973, though it had its beginnings as long ago as World War I. Today the average currency trading volume is approximately $1.5 trillion per day. Think about that figure for a moment. That is nearly 100 times the size of a typical trading day on the New York Stock Exchange of approximately $25 billion.

There are several unique advantages of the Forex in comparison to a stock exchange. The first is that minimum investment requirements for Forex broker accounts are relatively inexpensive to fund in comparison to many stock and mutual fund account minimums. Instead of a minimum of $25,000 to day trade on a stock market, with Forex you need capital as low as $250. This has made Forex trading very appealing to individual investors.

There are many other unique advantages of the Forex markets. If you are interested in learning more about the Forex markets, you will find more information on the Internet. Remember that not all investment strategies are free of risk, and the same goes for Forex trading.