Here are just a few reasons why so many people are choosing this market:
No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail forex brokers are compensated for their services through something called the “spread“.
No fixed lot size
In the futures markets, lot or contract sizes are determined by the exchanges. For example, a standard-sized contract for silver futures is 5,000 ounces.
In forex, you can trade smaller lot sizes, or position size. This allows traders to open trades as small as 1,000 units.
Low transaction costs
The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions.
For larger transactions, the spread could be as low as 0.07%. Of course, this depends on your leverage, and all that will be explained later.
A 24-hour market
There is no waiting for the opening bell. From the Monday morning opening in Australia to the Friday afternoon close in New York, the forex market never sleeps.
This is awesome for those who want to trade on a part-time basis because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep.
No one can corner the market
The FX market is sufficiently liquid that significant manipulation by any single entity is all but impossible during active trading hours for the major currencies.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.