The sooner an investor invests a capital amount; the next question drilling him would be the profit. If the expectation is for a large amount of profit then Forex will be the apt place to trade.
It is easy to invest in
To begin a trade in Forex for the first time, the capital investment is just only 300 dollars while in equity markets it will be more than thousands dollars. The smaller the investment of capital amount, the more the control you have on it.
Forex works round the clock whereas the other markets work only for 10 to 12 hours. Most of the markets operate on a common center; Forex trading can be done by over the counter trading method.
Most of the markets are inside market, whereas Forex market is open to all. Each and every fluctuations in money value with respect to foreign exchange fixed rate, is publicly declared to everyone across the globe at the same time.
Above all its liquidity, no market can match the turn-over obtained in the Forex market. Forex market like other markets allows brokers to trade with the individuals but there is no need to offer commission to any of these brokers.
Even in the OTC market, there is a hint of minimum risk. To eliminate it, the investor must possess a great deal of knowledge over the trading company, its management, its financial statements and so on. Provided with these details, an investor can attain a low margin of profit.
The major participants responsible for trading in Forex are; Governments, Commercial companies, Financial institutions and Central banks. In over the counter (OTC) trading method, individuals and organizations perform the trade, by agreeing to a bilateral contract. The trading performed in this method is on commodities, derivatives and stocks.