Why FOREX is considered a better option for investors when compared
to Futures Trading?
You pay ZERO commissions and exchange fees!
In the futures market, you must pay commissions and exchange fees. In the FOREX market, you pay NONE of that. No commissions. No exchange fees.
Not one red cent. How can FOREX do that? Simple. Because you deal directly with the market maker via a purely electronic online exchange, you
eliminate both ticket costs and middleman brokerage fees. There is still a cost to initiating any trade, but that cost is reflected in the
bid/ask spread that is also present in futures trading. And, because the FOREX trading platform offers instant execution off firm two-way prices,
you never have to worry about price "slippage" or bad fills which happen all too often in other financial products. To see for yourself how these
benefits work, open a free demo account.
You get more leverage than futures
The sheer size of the currency market (46 times greater than all futures markets combined) and the greater price stability allow you to trade
with a much higher degree of leverage than is typical with futures contracts. Plus, you are able to select the degree of leverage that you wish
to employ in trading. Unless you specify otherwise, FOREX sets your leverage level at FOREX's most lenient requirement. The actual margin
requirements for leverage vary with account size.
For example, if your account has $30,000 in it, then the margin requirement is $1,000 for every position (approximately equal to $100,000 worth
of currencies). Thus, the margin requirement is just 1% of the total value of the currencies traded - a 100:1 ratio. Click here for a demo.
Your risk is strictly limited
With FOREX, you can NEVER have a debit balance! In the event that funds in your account fall below margin requirements, the FOREX Dealing Desk
will simply close all open positions. That means that, even if you are dead wrong and there is a catastrophic market move against you, you can
never lose more than the amount of money you have in your account. In addition, by using stop loss orders that are guaranteed by FOREX, your risk
can be further limited and defined. That provides you with tremendous peace of mind. See for yourself by making a few risk-free virtual trades in
your FOREX demo account.
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