Forex investing is getting popular day by day. Number of forex investors is increasing exponentially every year. I will explain you the reasons behind its popularity.
Profit: Well, first reason is obviously profit. Profit is the main reason behind any kind of investment. Currency trading gives the returns which you can never get in simple investments, saving accounts, fixed deposits, marketing, share markets, stocks, real estates and other kinds of investment.
Invest as much as you want: There is no restriction regarding the amount of investment in forex. You can invest as much as you want. You can even start forex trading with very small initial investment. Well the small investment will not give you much profit but still this feature is very helpful to new forex investors. You can start your forex account even with 30 US dollar initial investment. There is no maximum limit.
Operate 24 hour: There is no starting or closing time of a forex market. You can invest in forex whenever you want. It operates 24 hours.
Accessibility: You can do all the forex transactions online. There is no need to travel place to place. You just need a laptop and and fast internet connection to operate. All the software used in forex trading are very user friendly. Even a novice user can operate them easily. There is no need of any special training to do transactions efficiently.
Narrow choices: Most of the currency trading revolve around eight currencies namely Australian dollar, US dollar, New Zealand dollar, Japanese Yen, Swiss Franc, Canadian dollar, British pound and euro. So, there is very narrow choice spectrum unlike share market. This decrease confusion and facilitates the decision making process.
Fluidity: It's a gigantic market. Daily turnover of forex market is about 4 trillion dollar. Huge volume of transaction happens daily. Hence you will never face a condition when no one is interested in selling or buying a particular currency. Currency keeps on flowing.
Leverage: Most of the forex brokers give you option of Leverage. I will explain the meaning of Leverage for readers who are new to forex investing. Leverage is a facility provided by forex brokers by which you can trade on borrowed capital. If the leverage is 1:200 it means, broker will invest 200 times the investment done by you. This way you can make good profits with small investment. But Leverage increases risk too, hence it must be used tactically.