At some point, anyone that aspires to become a professional trader or even just a hobby trader will have to make a decision on which market they want to focus on. Naturally, there are many things to consider when making the decision, and in the end, it’s a personal choice, but it’s nevertheless very important.
Maybe you prefer stock trading or you have an interest in cryptocurrencies or commodities. In that case, you should pick the market that excites you the most. However, if you want to do what most professional day traders do, you should start trading forex.
But why is that? How come the forex market is so popular among day traders?
There are a few very good reasons for that which we’ll take a closer look at now.
What is Forex Trading?
Since beginners might end up reading this post, we thought we’d start by outlining what forex trading is before we get into why it’s more popular than other types of trading.
Forex is short for foreign exchange, and it refers to the international currency market. It’s also the biggest market in the world with enormous margins. We’re talking billions of dollars a day bigger than all other markets. Also, unlike stock trading where one trades one instrument at a time, forex trading is done using currency pairs, and your job is to trade on the exchange between two currencies.
To learn more about forex trading in detail, you can check out the forex guides at BullMarketz.com – one of the most comprehensive forex trading sites on the internet.
The Forex Market is Superior Compared to Other Markets
As mentioned, the forex market is much bigger than any other market in the world, and the interest for it is huge. But that’s not the reason why it’s so popular.
In our opinion, there are four main reasons why forex trading is so popular.
- Availability and Optimization
Unlike most other instruments and markets, the forex market was designed and optimized for day trading from the get-go. Stocks, for example, were designed for long-term investments long before people started trading them.
In other words, forex trading is very accessible because the instruments were designed for trading. It’s as simple as that.
- Volatility and Leverage
Currencies can be quite volatile which is great for traders that want as many opportunities as possible on a daily basis. However, even though some currencies are volatile, they usually don’t move very far on a short-term basis. Therefore, forex trading is always done with leverage which helps maximize potential profits for traders.
- The Best Brokers
The third reason why most day traders prefer forex trading is because all of the best online brokers are forex brokers. Simply put, if you want to trade forex, you’ll also get to use the best brokers and tools.
Moreover, many of the leading forex brokers offer other types of trading such as CFDs, which means you always have the option of trading on several markets at once.
- Relatively Easy to Learn
Any type of trading is associated with risks, and becoming a great trader requires time and dedication.
That being said, compared to some other types of trading, forex trading is relatively easy to learn. Also, since the market is so popular and supported by great brokers, there are tons of useful resources out there that you can use to speed up the learning process. And let’s not forget the multitude of successful traders that you can be inspired by.
