Advantages and Disadvantages of Forex Trading

Forex means buying and selling foreign currency online. Forex trading is like share or stock trading but it has some extra advantages. The price of foreign currencies is always changing. Sometimes one currency is going to be strong opposite to others. You can earn money from the changing rate of foreign currencies. Suppose you have 100$, you sell it and buy 80 euro. When the price of Euro increase, you can make profit by sell them. You will need a computer with internet connection to trade in Forex market.

Advantages:

  1. In stock trading one get profit when the price increases. But in Forex you can earn money either the price increases or decreases.
  2. Forex trading can be start with little as 10$. Some broker also give sign up bonus.
  3.  Demo trading opportunity with virtual money which increases the knowledge without risk.
  4. The advantages of big amount leverage or loan.
  5. You can earn a good amount of money in just 15-20 seconds.
  6. You can trade Forex at home, so it will save your time.
  7. Opportunity of trading from anywhere of the world virtually.
  8. High liquidity market like stock market.
  9. You can sell before you buy.
  10. No buying and selling commissions.

Disadvantages:

  1. Volatility of prices.
  2. 24 hours traded, which is painful for individuals.
  3. Need help from professional trader.
  4. Tread of online scam.
  5. High risk to novice traders.
  6. You have to careful every moment even the time of sleeping.
  7. Need deposit to your account that means It is not a way of earning without investment.
  8. Need huge knowledge to trade.

How to start:

  1. First open an account in a broker site. The popular brokers are
  2. Then deposit your account with alert pay, PayPal or Bank transfer etc.
  3. Download the trading software from your broker site.
  4. Start trading by buying and selling currency.

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