Foreign exchange is becoming one of the most popular trading currencies for speculators and investors in Australia. The forex trading markets are big and liquid and work on a 24-hour basis. It creates huge leverage to even the smallest of individual traders. Australia’s Foreign Exchange Committee operates under the Reserve Bank of Australia. One of the largest global foreign exchange brokers based in Australia has an average daily trading volume of over 18.9 billion dollars. A person can trade forex online as an opportunity to invest in economies of different countries as opposed to independent companies. The online platform has opened the market to people to interact with hundreds of global markets.
The Forex Market Works for 24 hours for 5 Days a Week
As the forex financial market is worldwide, there is no working day or time specific to the trade. It works continuously as long as a forex market is open in some part of the world. Foreign exchange trade happens directly between two trading parties through a broker. This process is called over-the-counter. Generally, the trading hours begin in Sydney, Australia when the first major market opens on Monday. It ends for the week when the largest major-market based in New York closes on Friday.
It Provides Significant Liquidity of Assets
Forex is the most liquid financial market in the trading world. The ability of the invested asset to quickly turn into spendable cash is something every investor needs. It could be to utilise the fund for emergencies, education, events, travel or switch investments. If one opts to trade forex online, they have the benefit of moving large amounts of cash through different currencies. It also happens with relatively small spreads between the bid and the asking price between potential buyers and sellers.
Low Transaction Cost Enabling Multiple Trading Options
One of the biggest expenses that people incur with traditional investments is the expense ratio and the transaction costs. However, when it comes to the forex market, the transaction cost is built into the market price, hence eliminating extra expenses. Even the brokerage charges are relatively less as they charge a flat fee or a percentage of the transaction amount.
High-Profit Potential
There is no restriction regarding directional trading with the forex market. Traders can buy currency pairs when they have the potential to increase in value and sell it when they begin to decrease. The high volatility has the benefit of providing high returns.
It is Beginner-Friendly
One of the biggest selling factors of forex trading is its accessibility to the trading population compared to other markets. It does not require a huge initial investment and is relatively easy to understand and begin. This attribute makes it popular with hobbyist traders and professionals. A few trading platforms provide free demo accounts with live trading simulations that allow beginners to practise forex trading without succumbing to risk. They can get familiar with the market movements and develop risk management strategies without financial losses.
Forex Trading is Technology-friendly
When compared to other trading markets, like stocks, shares and mutual funds, forex trading is a relatively new trading platform. Therefore, it has grown with technology and is highly adaptable to the innovations and advancements that happen in the trading world. As there is no centralised system, global connectivity is an integral part of the market. It completely depends on advanced software to ensure this connection, allowing developers to continue innovating the platform. Forex trade online is available on mobile applications, computers, laptops, browsers and app platforms. The introduction of 5G has made global trade efficient and accessible in real-time for traders of any stature.
