How Is Forex Different From Other Markets?

  • Forex is the only financial market open 24 hours 5 days a week
  • Forex is the most liquid market in the world averaging over $5 trillion per day (see also How Big Is Forex?)
  • Forex has low transaction costs – most brokers include their commissions in the spread. There are no clearing fees, no exchange fees, and no government fees
  • High leverage and fractional lot trading effectively eliminate barriers to entry. One can start trading Forex with as little as $25
  • There are no margin calls in Forex unlike in stocks and futures markets
  • Selling short in Forex is just as easy as buying long. There is no uptick rule such as in stocks trading
  • There are no limits on the size of your position unlike in the futures markets
  • Due to the 24-hour trading there are rarely any gaps in prices except over the weekend
  • The enormous size of Forex makes it impossible to manipulate