The Benefits of FX UK Trading
When you look at trading on the FX UK market you should consider all of the benefits you will get. A lot of these benefits are what separates the forex market from other financial markets. When you look at all of the benefits that you get from this market you can determine whether or not this kind of trading is the best route for you.
The Size of the FX UK Market
The FX UK market is the largest financial market in the world. The daily turnover for this market is estimated at over $5 trillion. The next largest financial market is the stock market which only has a daily turnover of $22.4 billion. Many new traders do not consider the size of the market as a benefit, but this dictates the liquidity of the overall market. The more liquid the market the easier it is to trade on and the more profit you stand to make.
How Much Capital You Need
The forex market is unique because of the small amount of capital you need to get started. As there are three different types of accounts that you can get with forex brokers there will be an account that suits you budget. The most expensive accounts are the standard accounts and the cheapest are the micro accounts. Of course, there are limitations on the micro and the mini accounts. With these accounts you are limited in the size of the lot you can trade with. The amount of profit you can make with these accounts is also limited because you do not have the same purchasing power as traders with a standard account.
The forex market is open all day for 5 days of the week. These opening times are unique to this market as all other financial markets only operate during the business hours of the country they are based in. The forex market can offer these times because of the decentralised nature of the market. As there are no physical exchanges the market does not have to adhere to the trading times of the exchanges country like the other financial markets must.
One of the reasons why you can start a trading account with limited amount of capital is the leverage that the broker offers. There are some brokers that offer leverage of 200:1 which increases your money by 200 times. However, if you are using a broker from a regulated country then you will not be able to get these extreme leverage amounts. This is actually a very good thing because leverage is dangerous to use as you can lose the high amounts you stand to gain. In regulated countries brokers are restricted to leverage of 50:1 which expert traders state is more than enough for any trade.
Easy Online Trading
Another benefit of the forex market is the ease with which the retail trader can trade. All you need to trade on the market is an account with a forex broker and an internet connection. Of course, it is recommended that you undergo some form of training before you start trading on the market. Training is also easy to come by and much of it is free. Before you use a training course you need to verify how good it is through reviews and what other traders have to say.