3 Reasons Forex Trading is So Popular

Foreign exchange trading is also known as forex trading. It is a very popular market which is globalized all over the world. There are several reasons of its popularity. Forex trading, also called currency trading, FX trading, Foreign Exchange trading and forex currency trading refers to the largest financial investment market in the world. Forex trading is fully electronic and has an average daily capital turnover amount in the area of $1.5 trillion. Trading includes buying of one currency at a time and simultaneously selling other currency at the same time. In various forex trading companies you get customer service 7 days a week.

The #1 reason forex trading is so popular is the ease and accuracy of trading at the forex traders convenience. Forex trading follows the sun around the world which enables investors to trade on their schedule 24 hours a day from the comfort of their own computer. Most forex trading platforms offer free real time quotes, charts and news to facilitate forex trading efficiency.

The #2 reason forex trading is so popular is the inexpensive trading costs. Many forex trading companies charge no commissions. The forex trading company and the introducing broker are compensated by the pip spread.

The #3 reason forex trading is so popular is the limited risk of capital loss. Many but not all forex trading platforms do not allow trading once the forex account equity amount falls below the required margin level. The forex trading platforms that offer this service will automatically liquidate the currency positions before the account can go negative.