Invest FX

This site is all about educating you to trade this fantastic market and here are some very good reasons for you to seriously consider doing so:

• No middlemen Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair. Prices for each currency pair are streamed live through your brokers trading platform.
• No fixed Lot sizes In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although we explain later why a $250 account is a bad idea).
• Low Trading costs Many brokers charge extremely low commissions for each trade carried out, typically around $10 per million traded. Also the difference between the buy and sell price is usually very small.
• A 24 hour market Most people who wish to learn Forex trading do so because they have a full time job which they hope to quit and trade full time. The fact that Forex is a 24 hour market is great for these people because it allows part time trading at almost any time of the day. This way you can keep your regular job whilst learning how to trade.
• No one Controls the market Forex is the largest financial market in the world, with as much as $3 trillion traded per day. Due to its enormous size, no single entity, including governments or central banks, can control prices for very long.
• Leverage In Forex trading, a small margin deposit can control a much larger total contract value. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. Many new traders commonly use 100:1 leverage or 50:1 leverage in their trading. Professional traders on the other hand very rarely go above 4:1 leverage with most staying at or around 2:1 leverage.This contrasting attitude to leverage is one of the major factors in the success or failure of traders, because leverage is a double-edged sword. This means that you must find a balance between taking advantage of the leverage available to increase your profits, whilst not exposing yourself to too much risk.
• High Liquidity
  Being the largest market in the world there is a high volume of participation whether it is speculators trying to make a profit, companies exchanging currencies in order to pay wages in a foreign country, or just people going on holiday and needing some local cash! This means that every time you wish to buy a currency pair, there will probably be someone in the network willing to sell it to you and vice versa. So you can trade pretty much whenever you want.
• Free learning resources
  Many people find instruments such as stocks and property to be difficult to learn about because to trade them you have to risk real money from the start, and learning resources are not easily available. With the Forex, brokers offer free demo accounts allowing you to trade with pretend money using real time prices and market conditions. 

  You can also get easy free access to important and relevant news announcements almost as soon as they are released. These things are invaluable for new traders who would like to hone their skills before diving in with real money.

• Small account sizes
  Once you have practiced on a demo account there is the amazing provision for you to trade tiny amounts of real money, these small accounts are called Mini and micro accounts. These accounts are fantastic for those people with small amounts of trading capital because they can still keep their risks really small, even on a few hundred dollars.

Next: How do I start Forex Trading?