A decade ago, Forex trading was just for the big boys. It was the domain of banks and other financial institutions that could move millions of dollars around, and some Wall Street elite had access to it too. The Internet has changed everything, and Forex trading not just for the huge children anymore because there are online brokers that will let you make trades for mere dollars.
Internet Access and Automation
The main reason why Forex trading not just for the huge children anymore is because of the Internet. Forex trading was an exclusive party, and the biggest investors wanted it to stay that way. The Internet facilitates small and medium brokers who cater to the average investor. The average investor works for a living and invests a piece of his or her paycheck each week or month. These websites support automation, which means that people who can’t manually monitor their investments 24/5 can still make the right trades at the right time, whenever that may be.
Small Buy-Ins and Organic Growth
Another benefit of Forex trading being on Main Street is that the average investor can buy in for a small amount and then increase that amount organically. Historically, Forex trading required huge capital, and it was simply too much risk for the average investor. Now, the average investor can assign a piece of his or her investment pie to Forex and expand that commitment organically through returns and savings.
Low Risk and Betting with the Market
Forex trading not just for the huge children anymore because of two reasons: low-risk trades are available and betting with the market is an option. Perhaps the best way to increase Forex commitment is to bet with the market on high-probability trades and in small amounts. As the investment grows, the investor can increase the amounts and diversify the Forex portfolio with trades that offer higher returns at a greater risk.
Interest Rate Trading
One of the other attractive aspects of Forex trading is the ability to trade on interest rates. At the highest level, movement in the world economy can be slow, and if you’re just trading on the base value of currencies, it can be challenging to gain a foothold and improve. Interest rates, on the other hand, are much more volatile, which means that you can day trade and use that to augment your long-term plans.