The Foreign Exchange market is the buying and selling of currencies through a decentralized exchange and provides a platform for forex traders around the world to take consistent profits from the market. Here are 5 reasons for beginners to invest in Forex during 2021 and why we specialise in FX at Axe:
Open 24 hours a day
The Forex market opens on Sunday 22:00 GMT and closes on Friday 22:00 GMT. Between these times traders can place positions at anytime, anywhere! Why is the Forex market open 24 hours a day? It is a global exchange, with three trading sessions throughout the day – Asian, London and New York sessions. The most volatile periods come during London and New York.
Most Liquid Asset Class
Over $6 trillion dollars is traded daily on the Forex markets. This makes it roughly over 200 times bigger than any given day on Wall Street. This means forex beginners and experienced traders have plenty of opportunity to make forex profits because of the high volatility in currency movements. However, this also means any trader must manage their risk effectively, because what you can make quickly you can also lose just as fast! That is why we make risk management a significant part of our forex education at FX Axe when mentoring beginners and intermediate traders.
Although not advisable, leverage in the Forex market allows investors to open an account with as little as $100 and still make the investment worthwhile. This means there is a small barrier to entry for retail traders to give forex a go. Remember it is not a ‘get rich quick’ scheme and do not expect any returns in your first few months of trading.
No Hidden Fees
Unlike other assets where commission might make a major dent into your profits, forex has no hidden charges or exchange fees. Brokers will only take a small percentage using their spread (most good brokers will offer a 1-2 pip spread). This leaves you with some additional cash to invest into your forex education – check out our site and see if anything takes your fancy! Remember you can always book a free consultation with us!
Achieve Financial Freedom
Ultimately people get involved with forex for a second income. Through this global pandemic many have looked for additional money-making options. It is not too late! Getting involved with Forex in 2021 could be your best investment, provide you with some extra monthly income and set you up to achieve financial freedom in the long run. This is a marathon not a sprint and all of us here at FX Axe will be with you at all times on your Forex journey.