There is no stamp duty, no high commission, no agency fee, and the profit of foreign exchange brokers only comes from the quotation spread. For example, the tra platform EUR/USD1.42261.4228, where the difference between the two points is the cost of the trader. Generally, a certain trading commission will be charged for stock trading, and two commissions will be charged for buying and selling once. Relatively speaking, the transaction cost of foreign exchange is much smaller.
2, regardless of the bear market and bull market, the profit opportunities are equal.
The two-way trading of foreign exchange is very flexible and there are no restrictions. Foreign exchange traders are free to profit from the ups and downs of the market.
3.24-hour global trading
The foreign exchange market is a 24-hour global market, and traders can arrange trading time according to their living habits. This is also one of the reasons why many office workers choose to speculate in foreign exchange. At the same time, more and more people begin to use the time when the stock market is closed to trade foreign exchange as a channel to spread risks.
4. High leverage
The leverage ratio provided in foreign exchange trading is usually 50- 100 times that of stock trading. Foreign exchange trading is far superior to stocks because of its small and wide effectiveness.
Of course, we must realize that leverage ratio is a double-edged sword, which can not only make traders make quick profits, but also easily increase risks.
5. Instant delivery is not limited.
The foreign exchange market is a paradise for short-term traders, because traders can go in and out freely in one day, make immediate transactions and cash in profits at any time. However, stock traders will face many restrictions if they want to conduct short-term trading.
No one can manipulate the market.
The foreign exchange market has a huge trading volume and many participants, and even the central bank can't manipulate prices. The foreign exchange market is a fair place for traders.
7. Low threshold
You may think that foreign exchange trading needs to invest a lot of money. In fact, to your surprise, the threshold of foreign exchange trading is much lower than that of stock, futures and options trading. Foreign exchange brokers usually provide mini accounts and micro accounts. You can have a foreign exchange trading account for only $25.
8. Rich free learning resources
Almost without exception, foreign exchange brokers offer free mock accounts. Real-time foreign exchange information, chart services and learning resources are also within reach.
These are all valuable things for foreign exchange novices. Smart traders understand that "there is no such thing as a free lunch", and they will concentrate on their studies and prepare their "weapons" before the real transaction to avoid blunt knives in the fierce gun battle.