Here are some reasons why I like foreign currency exchange trading or forex for short over other forms of trading. Forex Trading can outperform the returns from many financial markets. When trading stocks, there are over 40,000 stocks to choose from. In forex, you can choose one or two currency pairs and focus on your technical analysis which, works very well because the market trends well. You can profit if the market is going up or down.

Forex Market Flexibility: Forex Trading offers a major advantage over other markets, no physical location. Unlike other financial markets like, the stock exchanges, for example which are only open during regional business hours? It operates through the electronic network of banks, computer terminals or via telephone.

The lack of a physical exchange enables forex market to operate on a 24-hour basis, spanning from one time zone to another across the major financial centre’s (Sydney, Tokyo, Hong Kong, Frankfurt, London, New York etc). There is no waiting for the opening bell.

In every financial centre there are many eager forex traders, who buy and sell foreign currencies 24 hours a day during the whole business week. You can respond to breaking news immediately if the situation requires it and customize your trading schedule as needed.

Forex Market Liquidity: The forex market is the most liquid and largest financial market in the world, with the equivalent of over $3 to 5 trillion dollars changing hands daily whereas traded volume on the stock markets equates to only 400 billion US dollars.

Traders can almost always open or close a position at a fair price. No one can corner the market. With a trading volume of around $1.9 trillion dollars a day, no single entity can control the market for an extended period of time, unlike stock fraud and insider trading which, we read about daily.

Forex Market Profitability: You can make money trading foreign currencies working from anywhere in the world. All you need to trade foreign currencies is a computer with internet connection. You can gain experience without risking your own money by using a free demo account.

Traditionally there are no commissions or charges on forex trades except for the spread. Start-up costs are low when compared with day trading stocks or futures. Forex offers up to 100:1 leverage but it is wise avoid very high leverage if you can afford it. Stocks offer 1:1 or 2:1.Futures offers 15:1 leverage. This offers opportunity for higher returns.