We have already mentioned in several articles about Forex trading, a market that belongs to the now widespread category of online investments and as such may appear to be of lower class than the large financial markets. In reality, however, as often happens, appearances are deceptive, and even in the case of Forex, this proverb is true.
Advantages and disadvantages of the currency market: investing in Forex today
But we try to better define the coordinates of the theme: Forex, an acronym for foreign exchange market, is in practice the world currency market where individual currencies are sold, bought, traded and quoted. Its birth is relatively recent in world economic history, and is linked to the need of different countries in the face of the lack of an orchestrated and precise quotation of exchange rates that were still fixed at the time. However, the real revolution for Forex came from computer screens and the unstoppable advent of the internet, which since the 80s contributed to spread a culture of online investment that still appears predominant today: for several reasons that we will now explain Forex has therefore grown exponentially in recent years, becoming the largest market in the world.
To give an idea of the currency market small investors together with the huge players including credit institutions, entire financial sectors and states move more than 4 trillion euros in terms of transactions every day, a huge figure that inevitably leads to wonder what can attract so much interest from investors around the world. After all, there are many instruments that, although with much lower percentages of earnings, provide infinitely more guarantees from risks than currencies and online trading in general, so why not opt for the latter rather than investing your savings in Forex? The answer is complex and concerns the unique characteristics of this type of investment, which, like all of them, certainly has its own disadvantages but also exclusive merits. Moreover, such a strong data as the one mentioned above emphasizes an important trend that seems to be having a follow up in the Belpaese: according to the statistical surveys of Sole 24 Ore in Italy over 6 million Italians have an account for online trading, and it seems that these numbers are growing.
Reasons why investing in Forex is convenient and enjoyable for investors
So why do many Italian and foreign investors consider forex a safe investment? First of all because the currency market is an abstract and not physical place, where there are closing times, holidays or changes due to the merger: in fact it is an online and global market, which therefore remains active 7 days a week and 24 hours a day, a unique feature that allows maximum freedom and autonomy to the investor. This is another of the great advantages of online trading in general, perhaps the factor that most of all in the past has drawn attention to this phenomenon: working comfortably from home is in fact a dream for many, and certainly Forex like many other investments if practiced with skill and attention can really provide fabulous income, not to mention the total autonomy inherent in Forex. In fact, the broker acts as a financial intermediary between the trader and the market, but now given the high competitiveness brokers play down and now have many interesting offers for their new clients. Among these we would like to point out forex, which has the authorization of the international control body CySEC, which attests to the transparency with which this broker has been operating for years in the international arena.
Moreover, if in most financial investments it is someone else who manages the asset, in this case it is the saver himself who chooses how, when and in what amount to invest his capital. In this sense there is also considerable room for growth for the trader, who can learn from his own (hopefully few) mistakes to build more solid strategies. Of course, a previous financial education would be an excellent prerequisite to start investing in Forex today, but in fact, even for early investors it is a practical and convenient tool, usually manageable from simple and intuitive platforms, designed specifically to simplify the user to make the investment without risking introducing too many variables and instead focusing attention on the mechanics of the transaction. It is also the most liquid market in the world, as currencies are traded daily around the globe with a very high demand, and even in this sense this feature provides another reason to try to earn online with Forex.
Best Brokers to Invest in Forex
What are the best brokers to invest in the forex market? We at Best Investments have decided to draw up a special ranking, with a list of the best investment platforms that do not charge commissions, are CySEC regulated (i.e. throughout Europe) and allow you to invest both upwards and downwards (short selling) within a trading platform extremely easy to use.