Why trade FOREX?

24 hour trading
FX is a true 24-hour market, which is a big advantage over other trading. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign currencies. You can always respond to breaking news immediately, and your P&L is not held to ransom by after-hours earning reports or analyst conference calls.

After hours trading for US stocks and futures has several limitations, mainly to do with liquidity.

Superior liquidity
Daily trading volume in the forex market is 50x larger than the New York Stock Exchange, so there are always broker/dealers willing to buy or sell currencies in the FX markets. It is the most liquid market in the world, and this helps ensure price stability. Traders can almost always open or close a position at a fair market price.

Investors in the stock markets and other exchange-traded markets are often vulnerable to liquidity risk, which results in a wider dealing spread, large price movements in response to any relatively large transaction, or even the inability to trade at all.

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Leverage
High leverage is easily available, with Mandus Invest offering 1-3% margin, which substantially exceeds the common 50% margin offered by equity brokers, and 6-7% in the futures market.

While this leverage is not appropriate for everyone, it can be a powerful, moneymaking tool. In a market where currencies rarely move more than 1% in a day, leverage is used to make meaningful trading decisions.

Risk is magnified by leverage, and it becomes essential to trade in a disciplined manner, consistently utilising stop and limit orders. Emotion is the trader's biggest enemy.

Low transaction costs
It is very cost-efficient to trade FX in terms of spreads, commissions and other transaction fees. Mandus Invest offers very low spreads, and dealing with absolutely no fees or commissions. In addition Mandus Invest provides free features like streaming prices, market charts and news.

Profit in both rising and falling markets
In every open forex position, an investor is long in one currency and short the other. A short position is one in which the trader sells the base currency in anticipation that it will depreciate. This means that profit potential exists in a rising as well as a falling market. See here for more information about the benefits of alternative investments.

The ability to sell currencies without any limitations
In the US equity markets, it is often difficult to take a short position due to the Zero Uptick rule, which prevents investors from shorting a stock unless the immediately preceding trade was equal to or lower than the price of the short sale.

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