Provided are some of the major benefits of investing in the Forex market:

 

• 100% Recession Proof Market: Being that Forex is a global marketplace, investors remain immune to recession and inflation influences that have major negative impacts on domestic affairs. The financial health of stocks, real estate, pensions, mutual funds are decimated under tumultuous circumstances. We only need to look back to a few years ago to the Great Recesion of 2008 or further back to the Great Depression of 1929 to see how dependence on one economy can have devastating repercussions on investment accounts. Professional Forex traders actually profit more during "bad" times as the obvious weakness of a countries economic health means increase in strength for its counter currency.  

​

• Pure Liquid: The Forex market is the most liquid market in the world, in essence it can be described as pure liquid. It can absorb trading volumes and per-trade sizes that may overwhelm any other market. Trading essentially consists of two parts: opening a position and closing of that position. Liquidity, which is highly correlated with volume, qualitatively evaluates how easily traders can enter and exit positions. A liquid market enables participants to execute large volume transactions with little impact on market prices. On the simplest level, the enormous liquidity alone is powerful enough to attract any investor to the Forex market, at it suggests the freedom to open or close a position at will. In addition, technical analysis, the study of price movements, operates better in liquid markets. Illiquid markets make it much more difficult to accurately determine entry and exit points.

​

• Market Transparency: Transparency is highly desired in a trading environment. It is a condition in which market participants are able to observe the detailed information in the trading process. Ultimately, the greater the market transparency, the more efficient the market becomes. The Forex market offers the highest level of market transparency out of all financial  markets. Informed traders are better off than uninformed traders as those with private information exploit most financial markets. Traders in all financial markets rely on market transparency because it allows them to see a transparent spread, which enables them to employ their premeditated strategies while still flexible enough to accommodate an ever-changing marketplace. With the transparency of information, traders can exercise their risk management strategies in accordance to their fundamental and technical approaches. For example, in the case of Enron, inaccurate reporting by officers of the company resulted in the downfall of the company and losses of many shareholders. Markets where this could occur are considered a poor trading market. Futhermore, market transparency ensures the ability to trade form live, executable prices. Market that do not offer executable prices and force traders to absorb unnatural silppage, obviously trader's profit potential. 

 

• 24-Hour Access: Forex is a true 24-hour, 5.5 days a week market. Forex trading begins each day in Oceania (New Zealand and Australia) and moves around the globe as the business day begins in each financial center – first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social, and political events at the time they occur regardless if it is daytime or nighttime. The only breaks in trading occur during a brief period over the weekend. A trader is able put a trade during the London session, follow it during the New York session, and close the trade in the middle of the following day during the Tokyo session This type of market access is invaluable to a market participant who needs to react quickly to global events. 

 

• Low to Zero Transaction Cost: The amount of cost to execute trades has dropped considerably in recent years. Transaction costs include all the expenses to actually execute a trade. Because transaction costs reduce profits, the lower the transaction cost, the lower the transaction costs, the more beneficial it is for the trader. Markets that have centralized exchanges tend to have higher transaction costs due to exchange and clearing fees associated with trading. Active stock and futures traders often see substantial portions of their gross profits going to broker commissions, exchange fees, and data/chart feeds. Transaction costs can also be increased with faulty executions. As regards the Forex market, there are minimal to no brokerage fees and zero exchange and clearing fees since it is an over-the-counter (OTC) market. What you see is what you get, allowing a trader to make quick decisions without having to account for fees that may affect their profit/loss or slippage. 

 

• High Leverage: The Forex market provides traders with much higher leverage than other financial markets. Forex traders can benefit from leverage in excess of greater than 50 times their capital versus the 10 times capita that is typically offered to professional equity day traders. In the Forex market, the margin deposit for leverage is not a down payment on a purchase of equity; instead, it is a performance bond, or good faith deposit, to ensure against trading losses. This is very useful to short-term day traders who can use the enhancement of capital to generate quick returns. 

 

• Low Account Minimums: Many individuals believe that entering the highly lucrative foreign exchange market requires large initial trading capital. This was indeed true prior to the integration of online trading into the Forex market in 1996. Today, individuals can gain access to the large liquidity pools of the major financial institutions through a Direct Market Access (DMA) Forex broker for less than $1,000.

 

• No Bear-Only Market: One of the biggest advantages of trading Forex is that there is no fear of a bear-only market. In many markets, high-return investments can often be difficult to sell after they are bought. However, in Forex, the major currency pairs always have buyers and sellers; hence, the Forex investor never worries about being “stuck” in a trade due to lack of market interest. Due to the vastly large order transactions of the liquidity providers, trades are executed in milliseconds, not hours or days. 

 

• Above Average Profit Potential: There is no question that speculative trading in Forex offers huge profit potential. It is an exciting way to earn exceptionally high returns on one’s investment capital with limited and controlled exposure.