Advantages of trading Forex
- The largest most liquid financial market.
- Some of the lowest costs involved in trading with highly competitive spreads on offer.
- Trading on leverage can enable traders to profit from incremental price movements.
- Open short and long positions in the market with a relatively small initial deposit.
Disadvantages of trading Forex
- A highly competitive market with a significant number of buyers and sellers
- Requires commitment from the trader in order to make well-informed decisions
- Trading CFDs using large leverage could also mean large losses if the market moves against you
Read our guide on how to start trading Forex and enter the financial markets with confidence.