Trading currencies (also known as foreign exchange, forex or fx) has many advantages over trading stocks and futures for both day trading and swing trading. Some are:
1. Long Trading Hours
A currency trader can pick and choose convenient trading hours because the market is open from Sunday at 5:00 PM EST to Friday at 4:30 PM EST.
2. Low Account Minimums
At some firms, you can day trade currencies with relatively low account minimums (may not be appropriate for all investors).
3. No Commissions
Trading currencies with our firm is commission free. Currency Trading USA gets compensated through the Bid/Ask spread instead.
4. Tight Bid/Ask Spreads
5. Flexible Margin Requirements
100:1 margin (1%) for forex trading is greater than for stocks and futures. Increasing leverage increases risk.
6. No Limit up / limit down
Unlike in futures, FX trading is not suspended when the prices move too much in one direction.
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