Lesson 6: Eight reasons why you should trade forex

If you are ‘considering’ forex trading as a way of earning an extra income, you are right on course. Don’t listen to naysayers, don’t backtrack, but trade cautiously.

Here are ten reasons why you should start forex trading in Kenya today.

  • No Transaction Costs

Aren’t you tired of your stock broker who is always taking ridiculous commissions on any trade you make? Well, I do. Forex trading relieves you of this.

There are no commissions, no fees, no fees, and no fees – neither from the broker nor the government. The broker earns only from the bid/ask spread, so you do not have to worry about paying brokerage fees. Okay, I might have lied just a littleeee bit! Some forex brokers charge commissions and low spreads, others charge commissions only; but most reap from spreads only.

  • Small Capital Required

You do not have to be a millionaire to make money through forex trading in Kenya. With as little as KES 10,000 you can make a kill in the forex market. How is that possible?

In a normal financial market, the volume of trade is set at a certain minimum, which often requires a lot of money. In the forex market, the lot or position size of a trade is determined by the trader. Thus, a trader can use $100 to buy a volume of 10,000 currencies as the broker provides leverage.

  • 24-Hour Trading

Forex markets operate for 24 hours due to varying sessions and time zones in different parts of the world. You can trade in the Tokyo session in the morning, London session in the afternoon, and the New York Session at night. That means you can trade part-time at any time of your convenience. However, you may need to consider the times when liquidity is high.

  • Everyone has a Chance

There are equal chances for everyone to perform well in the forex market. Moreover, there is no “Big Boys” to control prices in the forex trading. Thus, success depends solely on the forex trader’s strategy.

  • Leverage Maximizes Profits

Leverage in forex trading allows traders to use small deposits to trade in large volumes of foreign currencies. This gives the trader an opportunity to maximize profits and minimize capital risks. For example, if you use a leverage of 50:1, you can use $50 to trade in currencies worth $2,500.

  • Liquidity benefits

High liquidity in the forex trading market enables a trader to execute a trade instantly. This is possible because there are millions of traders in the market at any given time. For example, if you make a sale order, there is always another person who is ready to buy your currency.

  • Limited Constraints

Opening an online account for forex trading takes a simple process and low cost. With as little as $25, you can open any online forex trading account with a broker of your choice. Therefore, all you need is a national identity card or passport, a utility bill document with your address, or a bank statement. As simple as that, you will start your journey towards being a billionaire.

  • Free Information

Most brokers provide regular updates from major economies to help you with analysis. You can also improve your trading skills with a Demo account which is free to open. In this regard, a demo account gives you virtual money to hone your skills. Once you are done with the demo, you will be making regular profits because you will have developed a strategy that works for you.

Disclaimer

Remember, a leverage can work against you. It can enable you make large profits in forex trading with a small investment, but you will equally make huge losses if you go wrong with your trade.

Why do you choose forex trading over millions of other possible businesses?

Lesson 7: Key Terms Used in Forex Trading

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