Now that you’ve learned all the technical characteristics of the Forex market, that you know its participants and what you can do within it, I would say we can conclude this course.
As you have discovered, the characteristics of the foreign exchange market called Forex are truly unique, and they are the reasons why it’s the market that is growing the most and is giving the greatest number of opportunities to anyone who wants to challenge themselves seriously with the investing activity.
Forex: let’s make a summary
Let’s summarize them here:
- ACCESSIBILITY: The Forex market is certainly the most accessible of all. The money needed to be able to open an account are now very few, and the tools to manage your own accounts are free and easy to use, plus the fact that internet is full of resources for learning.
- FLUIDITY: The Forex is open 24 hours a day, 5 days a week. This means that the price movements are fluid during the week, without interruption. Traders that take advantage of technical analysis appreciate this characteristic because it allows a precise and tidy analysis.
- SPEED: Opening an account is really easy. For a demo account an e-mail is sufficient, and it takes 1 minute to get it. For a live account instead, you just have to fill out the forms on the web page (1 minute) and send the photocopies of the requested documents, either by normal post mail, either much more simply using a scanner via web (5 minutes in this case). You must then obviously make a fund deposit, and the ways to do it are many, from the classic wire transfer, to the credit card, or PayPal, etc.. Times may vary, but with the fastest one it only takes from one to two days. Result: in 2 days you can be ready to go and use your account to invest in the Forex market.
- LIQUIDITY: Due to the participation of virtually any financial institution, primarily central banks, the liquidity of the Forex market has no equal. It’s by far the most liquid in the world, which means that buyers and sellers will always find a counterparty to perform the tasks they want. Illiquid markets may instead put you in the awkward position of wanting to buy and not finding anyone willing to sell, or even worse of wanting to sell (maybe to stop the losses of an operation) and don’t find anyone willing to buy.
- OFFER: brokers that offer the opportunity to get access to Forex are many and, given the competitiveness among them, the services they offer to the investor are significantly improved in quality and accuracy. But always be careful, do not trust too much the unknown names or the newcomers. Always entrust the well-known broker and those where you can find a sufficient number of feedback (check out our list of the best forex brokers for beginners).
- CONVENIENCE: competition among brokers has made sure that the costs for Forex trading would decrease drastically. We can say that the costs are represented in trading commissions, and we can say with certainty that the fees required to operate in the Forex market (spread) are the lowest ever. This means that your earnings are not affected by continuous reductions that progressively cut out your income.
- LONG / SHORT: as seen in the last lesson, we not only can buy, then gain if an instrument increases in value, with Forex we can also short selling and earn if something loses value. This means that there are double chance for a savvy trader to profit from these movements.
- SOCIAL TRADING: The last positive characteristic which distinguishes Forex it’s without doubt the possibility to invest in it with Social Trading. Very hardly this particular form of investment could have been able to develop and expand without the flexibility, accessibility and power of the largest market in the world.
Forex in conclusion
Forex is literally a goldmine of opportunities for those who know how to trade like a professional.
And now you also have Social Trading, that allows you to avoid to become a professional trader. You can, much more easily, choose the winning traders that you like, and do what they do, gaining in percentage as they gain. This is what is called financial progress.
The next course is dedicated precisely to Social Trading, from its birth, to its main features, to its hidden sides.
Your chance to start making money by investing is getting closer.