Forex is now the world's biggest trading market with over $3 trillion turnover a day. The market is getting so popular because of some of the unique advantages it offers. Today, many educated youngsters take forex trading as their primary profession as it offers them a chance to earn good profit utilizing their knowledge, trading experience and skill.
One of the main advantage of forex is continues trading, the market is open for 5 consecutive days a week from 9pm on Sunday to 9pm Friday London Standard Time. On any other market the market timing is very important as different times of day have different trading volume and trading volatility. And holding open positions overnight is considered a very risky practice especially for short term traders. With forex the market is also more liquid and comparatively less volatile.
The second advantage is the low trading costs.
Forex trading does not involve any commissions for order placing; the broker is profited from the pip spread difference. Stock and commodity trading can include many commissions like exchange fees, ECN charges, order placing charges, etc.
One other account is the low initial capital requirement, forex accounts can be easily opened and operate for much less investments than stocks, commodities accounts. Foreign exchange trades also include more relaxed margin requirements that enable traders to trade big contracts for low capital investment.