|
Work
At Home >> More
Money-Management Articles >> Forex, An Alternative Investment Vehicle
By Ference Kish Forex (Foreign
Currency Exchange Market) has been used by international banks and large
investment companies for years to make millions of dollars. However, with
easy access to the Internet, it is now possible for anyone to take
advantage of this powerful tool and make money the same way large
institutions do, even with minimal startup funds at hand.
Even experienced investors seem mystified by Forex and have very little
understanding of it. Forex is not much different from the Stock Market,
often the same or similar techniques can be used to trade currency as is
used to trade stocks and commodities. What make Forex so mysterious is the
lack of available information and opportunities of training.
I have listed 10 good reasons why I prefer Forex to the Stock Market or
any other investment option and why any individual, or small investor,
should look at getting involved with Forex:
1. A 24 hour market. You don't have to worry about running out of time
because the Forex is open 24 hours a day, nearly all week.
2. Huge liquidity. Have you ever got stuck trying to get rid of some
stocks or options? With Forex, there are always buyers, thousands of them!
3. No commission on your trading. This is specially important for
individuals with small amount of money to invest. When using other
investment vehicles the cost of the investment is often prohibitive no
matter how attractive the investment itself is. Brokerage and other
government fees can easily eat up your profit even before you completed a
transaction. With Forex, there are no brokerage, government etc fees
involved.
4. Low transaction costs. Typically less than 0.1%!
5. No middleman. The investor is dealing directly with the Market.
6. Instantaneous transactions. Forex is fully computerized and transaction
can be completed in as little 2 seconds. The investor does not have to
wait for trade confirmation to arrive by email, worst yet, by post. All
'paper-work' is in electronic format, easily viewed, search, analyzed.
7. Huge leverage yet low margin. Both increase your profit. In most cases
leverage of 10:1 to 100:1 is the rule not the exception.
8. Minimal startup requirements. Again very important for individual or
small investors. With Forex it is possible to start trading with as little
as $300.00 dollars!
9. Easy access to the Market and your accounts, online, 24/7. Since Forex
is completely computerized, anyone with Internet access can trade online
and easily access their account and trading history. Most trading
platforms allow the user to export this information to other third party
software for storage, graphing, analysis etc.
10. No insider trading. Because of the way Forex is 'de-centralized', it
is almost impossible for anyone to fraud the system.
I could go on for ever about Forex, it is an amazing tool for investors
and also a very exciting opportunity for individuals. I hope you'll catch
the fever, too.
Wishing you success,
Ference
This article was added on: April 16, 2006.
|
