In the past decade, the popularity of foreign exchange trading has increased. Technological advancements and the increase in mobile platforms have made it easier than ever to conduct online currency transactions anywhere in the world.

And foreign exchange traders are engaged in currency trading business!

This is a difficult process that requires patience and mastery of numerous strategies. In 2022, traders will have more opportunities as they will be able to use effective forex trading strategies, algorithmic forex trading, and artificial intelligence (such as expert advisors) to further optimize their trading.

Excellent foreign exchange traders will utilize all available resources to achieve success, including time-tested trading strategies, real-time market information, and the latest developments of other successful foreign exchange investors.

Foreign exchange trading has many benefits, and to discover these benefits, you first need to understand what foreign exchange trading is.

What is the content of this guide?

17 Main Benefits of Foreign Exchange Trading

1. 24-hour market

2. Free educational resources to help become a successful foreign exchange trader

3. Suitable for all transaction methods

4. Low transaction costs and no commission charged

5. Various risk management tools

6. Leveraged utility

7. Realize profitability through 'long' or 'short' trading

8. High Liquidity Markets

9. Start the experience at a minimum of $200

10. Start small scale transactions

11. Proficient in utilizing technical analysis

12. Free foreign exchange trading platform

13. Conduct risk-free exercises using simulated accounts

14. There is no correlation between the foreign exchange market and stocks

15. Foreign exchange transactions from anywhere in the world

16. Less overnight spreads than the stock market

17. Decentralized Exchange

What are the risks of foreign exchange trading?

What are the advantages of foreign exchange trading compared to stocks?

Is foreign exchange suitable for beginners?

What is foreign exchange trading?

This is a quick piece of information for those who are not sure what foreign exchange trading is.

Foreign exchange (FX) refers to the exchange of foreign currencies, which can be traded 24 hours a day, 5 days a week. The foreign exchange market is the world's largest financial market, with extremely convenient trading, and traders can trade from anywhere and at any time.

The most basic form of foreign exchange trading is buying and selling currency to earn profits. Foreign exchange traders speculate on currency pairs to gain an increase or decrease in value. This determines whether they are buying or selling currency pairs.

Although foreign exchange trading does have risks and unpredictability, this is precisely why it attracts some investors. The unpredictability or volatility in trading can bring opportunities, while opportunities in foreign exchange trading may generate profits or losses, depending on the trading party you are with.

Recommended reading: Beginner foreign exchange trading

17 Main Benefits of Foreign Exchange Trading

The following is a complete list of the main benefits and advantages of foreign exchange trading that many people are not yet familiar with. For a complete list overview, please refer to the dynamic image at the end of the page.

1. 24-hour market

Most stock exchanges operate from 9am to 4pm (depending on their country of operation), while the foreign exchange market operates from Monday morning New Zealand time to Friday afternoon New York time. This means that you can trade 24 hours a day, 5 days a week, bringing you more trading opportunities.

2. Free educational resources to help become a successful foreign exchange trader

Foreign exchange trading is easy to learn, but difficult to master, which is why many people refer to trading as a 'journey'. At Axi, we hope to provide the best educational content for all traders to start trading on the right path.

You can browse our various free educational resources - including webinars, foreign exchange trading courses, videos, articles, and e-books - to help you become an excellent foreign exchange trader.

3. Suitable for all transaction methods

By making profits through long and short positions, you can utilize various foreign exchange trading methods to achieve success. For example, some foreign exchange trading strategies allow traders to confidently execute trades using technical and fundamental analysis, while strictly adhering to comprehensive risk management practices.

The trading method you use depends on the time and effort you can invest in foreign exchange trading, as well as your ultimate goal. There are many trading methods to try: price behavior strategy, intraday trading, scalp stripping strategy, band trading, and so on.

4. Low transaction costs and no commission charged

In order to simplify trading transactions, foreign exchange brokers usually bear any costs related to the transaction. This means that you do not need to pay transaction fees for transfers, deposits, withdrawals, or exchanges.

At Axi, basic account users do not charge any commission, but professional account users will be charged a small commission fee. There are some exceptions, depending on the type of product you trade and the duration of your open positions, but overall, transaction costs are generally low and highly transparent.

5. Various risk management tools

When investing funds in financial markets, there are always risks, whether it is foreign exchange, commodities, stocks, or any other financial market. Appropriate foreign exchange risk management techniques are crucial for foreign exchange traders who hope to achieve long-term success.

Some key risk management elements are available for you to use in foreign exchange trading:

6. Leveraged utility

Being able to leverage in this market is one of the most attractive benefits of foreign exchange trading, as it allows you to open up large position trading markets with a small initial investment.

The available leverage ratio varies depending on the trading location you are in. Let's give an example of a leverage ratio of 10:1.

If a foreign exchange trader chooses a leverage ratio of 10:1, it means that for every dollar of capital in their account, they can trade up to $10.

The advantage of using leverage is that it may increase your profits, but there is also a negative effect, which is the high risk of loss. Therefore, when using leverage effect, you must carefully consider weighing the appropriate level of risk.

7. Realize profitability through 'long' or 'short' trading

In other markets, price difference contracts are often used as long and short selling tools. In the foreign exchange market, this is a crucial component, as traders often need to sell one currency and then buy another currency.

For example, currency pairs always appear in the form of the base currency as the first term and the quoted currency as the second term. This means that the price of the AUD/USD currency pair is calculated based on the value of one unit of AUD relative to the US dollar.

If we believe that the exchange rate between the Australian dollar and the US dollar will rise, then we will buy the currency pair (long). If we believe that the opposite situation will occur, and the exchange rate of the Australian dollar against the US dollar will decrease, then we will sell the currency pair (short).

8. High Liquidity Markets

Liquidity is a general term used to describe assets that can be purchased in the market without affecting their overall price. Foreign exchange is considered to have high liquidity because the foreign exchange market is very large and the trading population is very large, and manipulating foreign exchange prices is a very difficult task - even for people with large trading volumes. So, liquidity is important because it can maintain relative stability in prices.

9. Start the experience at a minimum of $200

You do not need a large amount of trading foreign exchange initiation funds. Due to the fact that the foreign exchange market is the most easily accessible financial market in the world, starting your trading journey for as little as $200 is an excellent opportunity. Before starting a transaction, you need to think about what you hope to gain from it and consider the level of risk you will bear.

Many people consider trading as a way to supplement their existing income. In fact, most traders initially trade in their spare time as a way to earn extra income outside of their daily work. This trading method allows you to integrate trading into your life, rather than making it the center of your life.

10. Start small scale transactions

In foreign exchange, when you want to trade, you need to choose the trading sca