7 Reasons Why Is Forex So Popular Around The World

Why is forex so popular?

Is it because of its liquidity, or its volatility, or its trading range, or even its anonymity?

Well, there’s no simple answer to that question.

But one thing I do know for sure is that there are a LOT of people who trade forex every single day.

And in this post, I’m going to show you exactly why that is.

Let’s get started.

It’s a 24/5 Market, But You Can Have a Full-Time Job and Still Succeed

If you’ve ever tried to make money in any kind of online business, you’ll know that it’s really hard to build a sustainable and profitable business without making sacrifices.

After all, it’s really easy to spend money and it’s really easy to get distracted from your work.

But in the forex market, that’s not the case.

In fact, the forex market is actually one of the few areas where you can make a decent amount of money while still having a full-time job.

That’s because of the 24/5 market.

That means that you don’t have to be at your computer at exactly 9:00 AM (that is unless you want to).

And you don’t even have to be at your computer at 9:00 PM (unless you want to, that is, but you can trade with a time difference if you like).

This allows people a much larger opportunity to trade before or after work if they choose to.

Unlike the stock market, which is only open during business hours.

Forex is the most liquid market in the world.

Every minute of every hour of every day there is at least $5 trillion worth of currency trades taking place in the forex market.

That’s nearly two times more than the value of all the stock markets around the world combined.

It’s Cheaper to Trade than You Think

If you’ve ever done any kind of research into forex trading, you’ll probably know that it isn’t cheap to get started.

But what you may not realize is that it’s cheaper than you think.

The cost of opening an account and getting started is usually very cheap.

That’s because brokers usually give their clients a small initial deposit.

And the costs of trading in the forex market are also very cheap because there are two options for you to pay for your trades, these are:

  • Through spreads; or
  • Through commission

The spreads are generally the same as a normal stock, and this is how it works: You pay the spread on the currency pairs that you want to trade. 

And due to the high liquidity of the forex market, brokers can offer spreads for as low as 0.5 pips, which is around $5 per trade on 1 lot for EURUSD.

Or with commission-based pricing, you pay a set commission, but have zero spreads – this can be better if the spreads you trade are 0 to 0.1 pips.

Commissions can be around $5 per 1 lot round trade.

You Don’t Need a Large Deposit to Get Started

It is true that when you start trading currency pairs online, you will need to put a deposit down before you begin.

But the minimum deposit required by most of the leading forex brokers is $500, and the amount varies from broker to broker.

Many forex brokers have no minimum deposit at all, so you can enter the market as a virtual beginner with just $5.

However, the lower you deposit, the harder it will be to be profitable.

It is always best to discuss with your forex broker your best approach to setting up your account, but ONLY deposit money you can AFFORD to lose.

Don’t let the broker try and upsell you with artificial benefits.

Also, if you are a complete beginner – you can set up a free account for demo purposes which gives you a real-time trading experience using demo money for free.

Leveraging Is the Key to Gaining Large Gains (& Attracts Everyone)

Leverage is the secret to winning in the forex market.

To make a long story short, the larger the position, the higher the risk, and the higher the potential reward if the trade is successful.

The key is knowing how much to place on each trade and what leverage to use.

It’s not a secret that the forex market is a very risky game.

If you make a mistake in the market, you could lose a lot of money.

You should always be careful and watch out for your trading signals so you can stay safe.

If you do it right, then you could make a lot of money in the market.

Forex trading has become a popular way to grow your capital in recent years. 

You should choose the one that will give you the best results and the least amount of risk.

If you don’t understand leverage, then it’s best that you read a few articles on it so that you know more about it.

You Can Trade Multiple Times Per Day

Thanks to the low costs, leverage, you can capture trades multiple times per day.

This is known as day trading and on lower time frames, scalping.

As you may have noticed, trading forex multiple times per day can lead to some serious profits.

If you are someone who wants to look at charts all day, then you will want to make sure that you are able to trade multiple times per day.

You also want to make sure that you are able to set up your trading plan ahead of time because opportunities come and go frequently.

It’s not just trading multiple times per day that captures peoples minds about forex trading though.

It’s also the fact that if you miss a trade, there is another opportunity around the corner.

There is no right or wrong way of trading.

There Are Hundreds of Different Ways to Trade Forex

There are literally hundreds of different ways to trade forex, which makes it tough to know where to start.

Forex trading isn’t for everyone, but if you’re interested in learning more about it, there are plenty of resources on our website for you to devour.

The reason why this is appealing to people is that they can do how they want when they want, with whichever asset they want.

They can follow technical indicators, fundamental analysis, price action, or use quantitative analysis to trade their capital.

You can trade however you want, and make a bespoke experience for yourself.

Learning how to trade Forex is a challenge.

It’s really easy to get confused when you first start learning.

The most important thing is to make sure that you do the right things.

You should practice trading on a demo account first. You can always test the waters on a demo account before you start trading real money.

This way, you’ll be able to see how the trading platform works before you start trading with real money.  

People are naturally drawn to things that seem to make money, especially if you can get something for nothing.

There were many times when “gurus” were (are?) selling forex courses that would guarantee returns and an income, all you had to do was follow their secret set-up or buy their course.

Simple right?

Thanks to the markets being unregulated for a long time, internet marketers used forex as a golden key to unlock the dreams of millions of individuals by making forex trading sound so simple and they just couldn’t lose.

Unfortunately:

There are some people who are very interested in getting rich quickly.

They don’t think much about the hard work it takes to earn money.

These people spend a lot of time looking for a quick fix or a scam that will give them instant wealth.

The fact is, there is no quick fix for financial freedom.

It takes a lot of hard work.

If you are looking for a way to make money fast, the best thing you can do is to spend some time reading about the subject so you can learn what works and what doesn’t.

You have to spend time and effort before you can get rich.

Money takes time to make and it is a slow process. 

This is also the exact same reason why Forex trading is now seen as a scam, or why people as if forex is legit…

Of course, forex is legit.

It’s just the internet marketers looking to make a quick profit from gullible beginners who believe they can do nothing and make millions of dollars overnight that makes it a scam.

  • There are 100s of ways to trade forex
  • You can use leverage to enhance your gains (and losses)
  • You don’t need a large deposit to get started
  • You can trade multiple times per day, every day (if you wanted to)
  • It’s cheap to trade
  • It’s a 24/5 market
  • Popularity started because of get rich quick schemes like forex pyramid schemes

Wrapping It Up

It’s hard to argue with the numbers, especially if you look at the popularity of Forex in the U.S., UK, and other parts of the world.

Forex is one of the most popular trading instruments, and in this article, we took a closer look at why it’s so popular!

I hope you found this article useful and if you want to continue to learn more about forex, check out one of the recommended articles below.


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