Forex trading is a global and decentralized market that deals in the exchange of currencies. This line of commerce has evolved steadily over the past few centuries and is yet to reach its absolute peak. Back in the day, the only valuable commodities were precious and rare metals. As society evolved, the emphasis was placed on an abstract form of currency: Paper.
Over the years, this abstract form of currency and the industry that it gave birth to came to be known as the Foreign exchange market.
What is the Foreign exchange market?
As mentioned above, the foreign exchange market is a decentralized and over-the-counter industry which deals in the exchanging of currencies worldwide. In simple words, this is a platform which enables people to benefit from the flow and exchange of popular currencies. As demand rises, vendors and owners can choose to sell the currency they possess for a higher price.
The advantages of Forex
Forex has a lot of advantages to it. These reasons are, perhaps why the industry is booming and attracts people from all walks of life. Without further ado, here are the topmost reasons why you should also start to consider indulging in Forex!
- No commissions
This industry has no clearing fees, no exchange fees, no government fees, no brokerage fees. You’re good to go without any sort of governing body that requires a monthly payment.
- 24-hour market
Since Forex indulges users worldwide, there is no particular time-slot in which you can commit to your business. You can choose to work at whatever hour you fancy.
- No monopoly
As of yet, there are so many individuals in this industry that it is almost impossible for a single entity to amass the bulk of the power. Hence, no entity has any sort of monopoly over this business.
- High liquidity
Since you can buy and sell at the click of a button, this industry is very liquid. At any moment, you can choose to sell your trade and get a safe return. ‘Trades’ don’t get stuck in negotiation.
Are there any other platforms for trading?
Yes, there are plenty of other platforms as well, each with their own set of advantages and disadvantages. These include Cryptocurrency and the Ethereum network.
The mechanism for their operation is virtually the same – users can buy crypto in exchange for real money, and then later decide to sell their money for legitimate money. Just like Forex, the users get to decide a price for the valuables being transferred.