Why is Forex the Best Investment Vehicle?

Foreign Exchange or Forex trading market is one of the largest markets in the world. There are billions and billions of dollars flowing back and forth from hands to hands in this market. Some of them becoming better off but many sacrificed. But why is forex considered one of the best investment vehicles in the world?

First, it is accessible almost anywhere in the world. People have to exchange their money from currencies to currencies for various reasons. This gave rise to more than three trillion trading volume in one day worldwide which is a number beyond comprehension. As we all know, large amount of trades in a specific market is a crucial factor to determine whether it is suitable for use of different investment plans. The popularization of online forex trading increases the already high accessibility of forex market.

Secondly, the foreign exchange market opens 24 hours a day. So whenever your investment intuition tells you to trade, you can immediately get online and do business. There is no need to wait. However, this also forces full time forex traders to work at crazy hours. Well, a coin always has two faces.

Thirdly, forex market has a nice narrow focus. There are around eight main focused currencies and things evolve around them. It is much easier to grasp the whole picture when there is a clear focus. When you read the news, you can more clearly understand the implications on forex. On the other hand, for stock trading market, the trading volume is smaller than forex but there're hundreds of thousands of stock around the world, which creates all kinds of weird dynamics beyond the grasp of human beings.

Fourthly, for a market to qualify as a profitable and manageable trading market, liquidity is the most important quality to possess. The forex market being the largest financial market in the world has a trading volume of over 3 trillion US dollars every day. The large amount of trading volume plus the facts that the market opens 24 hours a day and the market's narrow focus allows investors to buy and sell forex as they will. Unless rare situations like war happens, you can buy currency without worrying it be out of stock or you can sell currency without worrying that no one would take it from your hands. The highest liquidity makes forex market the best one to get involved.

Lastly, the size of the forex market makes it free from any manipulation of big sharks. In stock trading, prices of stocks are often controlled by the inner circle. But for forex, it is fairer to small investors. At least we would be eaten up without notice, since we know that the market cannot be really controlled by someone for a substantial time.

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