Reasons to Start Trading Forex

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When people first start wanting to get into online and day trading, they find it hard to choose between all the different trading instruments that are available in the marketplace.

They have a variety of choices, including stocks, futures, options, forex, and forwards. However, until you start trading, it will be hard to know which option is the right one for you.

For stocks and futures have a lot of good things going for them, but they also have a lot of bad things going for them as well.

For those with limited funds, stocks and futures are not the way to go.

Stocks don't give you much leverage. Even with cheap stocks, ($10.00 and under) you only stretch your money so far. This example of $1000.00 will only be enough to by 100 shares of a stock worth $10.00, and with the low rate of return that most stocks bring it would be very long time for that investment to really pay out.

But taking a look at the S&P e-mini, it becomes painfully obvious that somebody can crash their account in a hurry. When each single tick move is worth $12.50, you better know what you are doing or you will certainly wish you had.Futures are also an expensive venture (obviously some, more than others).

But forex, is just perfect for all the newbies in the trading world.

Trading markets are 24 hours a day. The markets only close for the weekend but during the weekday, it is open 24 hours a day. This is perfect for those who work during the day, and don't have time to follow the trading charts during work hours. This give everyone time to trade.

Mini and Micro Accounts: Many brokers offer mini and micro accounts for their customers. This is great for those that are just starting out and don't want to risk that much per trade.

Forex brokers have very low deposit requirements. You should be able to open an account with a litte more than $225.

There is great diversification: There are dozens of choices of currency pairs in which to trade.
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