You can make money whichever way the market goes because you can either trade long or short. In effect there is no such thing as a bear market in the foreign exchange market.
Brokerage fees are lower than in traditional trading as brokers are paid according to the trade in the form of the bid/ask spread. The spread (pips) is the difference between the buy and sell price of the currencies you are trading.
The forex market cannot be manipulated or influenced by governments let alone by financial commentators who can and do make and break companies through their public analyses. This global market is just too enormous for this to happen.
Forex trading is liquid. Because you are trading in cash when you trade currencies the execution of any transaction is virtually instantaneous. You have no need to wait to collect your profits as with stocks, shares and commodities which can be traded alongside forex with binary options.
Forex trading can be easily learned as there are only seven major currencies to master and you can start and even stick with only a few of these. This has major benefits over the thousands of different possibilities in the stock market.
Leverage allows for large profits with a small investment by trading on margin. Where your broker allows margin of 100:1 you can purchase $100,000 in currency with a $1,000 deposit. However you must be aware that leverage is a two way street and a losing trade will lead to large losses if you are not protected.
Flexibile settlement plans can be customized to definite investment objectives. Investors may select from a variety of trade plans based on their individual monetary goals and requirements.
There are positive tax advantages in trading forex. It is an investment which is tax deferred therefore gains on your investment are taxed as capital profit only upon withdrawal.
You do not need huge sums of money to get started. Forex trading is open to everyone as most of the forex firms offer their customers mini-trading accounts and free demo accounts. Because of this, forex has become very accessible.
Currencies are traded 24 hours a day around the world during the business week. As one market follows on from the next from Tokyo, through Frankfurt and London and onto New York, the foreign exchange market is open for business. This is a major benefit for smaller investors trading in their spare time because you can schedule your trading to suit your lifestyle at your convenience.