8000 stocks vs. 4 major currency pairs :
There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. Which one will you trade? Got the software? Got the time? Concentrate on the majors; find your trade. You have approximately 34 second-tier currencies to look at in your spare time (if you are so inclined).
There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. Which one will you trade? Got the software? Got the time? Concentrate on the majors; find your trade. You have approximately 34 second-tier currencies to look at in your spare time (if you are so inclined).
No Middlemen :
The stock markets are comprised up of a number of centralized exchanges. One of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded presents additional costs. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market maker. Forex traders get quicker access and cheaper transaction costs.
* FX Solutions is compensated through a portion of the bid / ask spread.
Trade Countries Like You Do Companies :
Equity traders rely on key fundamental and technical data when making assessments of a particular company’s future growth and performance. Just the same, similar factors are considered when gauging the overall health of a country’s economy and currency. Currency valuation is a function of supply and demand. Namely, factors such as interest rate movements, economic indicators such as GDP, foreign investment, and the trade balance all provide an indication of the general health of an economy and underlying shifts in the supply and demand for that currency. As a basic example, consider an interest rate decision by a country’s central bank. If a rate is hiked, it is expected that capital flows into that country may increase, as investors may seek to realize a greater return on their investment in that country vis-à-vis others. As more capital flows into the country, the demand for its currency increases - which generally causes an appreciation of that currency.
24-Hour Trading Liquidity :
Since the Forex market, in a sense, follows the sun around the globe, it rarely experiences periods of illiquidity. When , clients can place trades continously from Sunday 5 PM EST to Friday 4:30 PM EST. You no longer have to wait for the market to open when news has already hit the streets or have to stop trading because the CME, CBOT or other American futures pits have closed for the day. This gives the Forex trader added flexibility and continuous market opportunities that just aren't available in Futures.
There are three main economic zones that are linked throughout the world. For instance, when the Pacific Rim markets such as Japan and Singapore begin to slow, the European markets of England, Switzerland and Germany begin. These Forex markets are followed by the North American markets of the United States, Canada and Mexico. As the North American markets begin to slow down for the evening, the Pacific Rim starts their trading day again. This example shows that you are no longer limited to trading using a comparatively short, trading day offered by U.S. markets only.
* FX Solutions dealing desk is closed from Friday 4:30 PM EST until Sunday 5 PM EST. No trades may be opened or closed during this period.
Execution Speed and Quality :
As a result of the unsurpassed liquidity in the spot FX market, the execution speed and quality is far superior to that of the Futures markets, and other markets as well. Every Futures trader has experienced periods of inconsistent execution and price uncertainty – for example when even a market order was subject to a 30-minute fill delay. Despite electronic platforms and limited guarantees on execution in the Futures market, execution price and time is far from certain. In contrast, when trading on the GTS Platform, the price you see is a real-time streaming executable rate.
Highly Trending markets :
The Forex market offers some of the smoothest trends available in any market. No other market can come close to the amount of monetary volume and participation as the Forex market. In turn, this creates a haven for traders not having to deal with gaps and price movements, erratic spikes and other choppy market conditions more commonly experienced in the lower volume markets, like Futures or Options.
Commission-Free Trading :
Though some speculators are unaware, all financial markets have a spread (the difference between the bid and ask price). In the Futures market you are not only paying the spread, but you are also paying commission charges, clearing and exchange fees on top of the spread. Ticker prices in the Futures market typically signify the last traded price, not the spread. FX Solutions offers you on tradable prices. This allows you to make quick decisions on your Forex trades without having to account for fees that may affect your profit/loss or slippage between the price you have just seen on the ticker and the price upon which the order will be filled.
* FX Solutions is compensated through a portion of the bid / ask spread.
Better Leverage :
One of the main advantages for traders trading Spot currencies is the leverage capability afforded to them. With margin policies as lenient as .25%, a trader is able to leverage up to 400:1. That is, a trader can control a $100,000 position for only $25. Keep in mind however, leverage is a double-edged sword and you should try to avoid overleveraging, as it magnifies both profits and losses.
* FX Solutions asks that you consider the risks associated with increasing your leverage. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit, this may work against you as well as for you. You may sustain a total loss of initial margin and you may be required to deposit additional funds to cover a short margin position. FLEXI Leverage is available for self-traded accounts only (does not apply to managed accounts).
