Forex vs other investments
Forex trading has many advantages as compared to other forms of investments. For starters, it allows investments to be made around the clock throughout the day. Unlike the stock exchange which is operational only during office hours and if you are investing in overseas markets, you will have to accommodate their time frame.
If you want to start trading in forex, the initial capital too is lower than that of other forms of investments. In the United States, a USD300 capital will allow you to start a ‘mini account’ while in Asia, a mini account could be started with a S$500 capital. Comparatively, if you are trading shares, you will need to have the amount of the share you are buying in order to ‘keep’ the share until you decide to pay.
Other forms of investments like Unit Trusts would need you to keep the money for a period of time, usually involving many years. This is where your money are ‘tied’ for a while and even if you decide to cut your losses and withdraw the amount invested, usually you are getting less than you have put in. Forex on the other hand starts with a low investment figure which allows you more control of your money.
In some cases when the market is bullish, it is a good time to be very profitable. In the stock market, you will need to wait for the price to rise considerably before you can actually be very profitable. Furthermore, after the price of the share goes up, it will only come down again, which means you are exposed to more risks again. If you are good in forex trading, you will be profitable just by using a small start up.
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