Traders are spoilt for choice of ways to invest in 2015. The availability to trade anything from almost any location has created a new wave of brokers providing alternative investment opportunities as well as many short-term speculative tools such as binary options and stock day-trading. In the case of binary options trading, this form of investing can be highly rewarding with up to 80% returns on winning options which can be set to expire within sixty seconds. Stock trading can also provide a good return for day traders, although there are a number of reasons why trading forex still comes out on top.
Regulation and protection of trading funds
In recent years there has been a boom in online brokers offering forex, spreadbetting, stocks and binary options trading. These have taken advantage of the innovations in home-based trading which is possible with the advance of internet services and the provision of instant market data. Trading stocks and forex is no longer designed for those who have a lot of money to invest and typical trading accounts can now be opened for as little as $100.
One of the problems which has arisen with the surge in popularity of investments such as binary options is certifying if the broker is credible. Unlike forex markets, which are highly monitored by national regulators, binary options brokers are not often regulated in the country of operation. This is due to the fact that many national jurisdictions do not yet recognise binary options brokers as financial instruments for regulation. This is certainly the case in the US and for European traders, with only Cyprus providing any form of secure regulation. Forex, on the other hand, has a long reputation as being highly-regulated with secure obligations to protect client funds and obligations relating to the services that they provide.
Forex trading benefits from being the most time-tested forms of speculating on the currency markets, having rapidly developed over the past twenty years. It is no longer only provides for traders with large amounts of capital but allows traders to access currency markets from their homes or mobile device. Forex brokers have grown with these developments and many of the most established have huge global reputations, providing important reassurance to investors that their capital is safe and protected by a reputable company.
Ability to control a larger trading positions
Forex trading has developed in to a trillion dollar market and, in order for traders to take advantage of the slightest price moves, positions need to be large enough to generate significant profits. Forex brokers therefore provide their traders with the opportunity to trade on margin, allowing trades and potential profits to be far larger than the deposit within a trading account. Other forms of trading, notably stocks, binary options and spread betting only allow traders to use the capital that they have available in their trading account.
Superior charting and technology
Alongside stock trading, the forex markets provide the most advanced an innovative technology available to traders. Advanced charting software, both proprietary software provided by brokers and platforms such as Metatrader, has become a standard feature of all forex brokers looking to attract serious traders. Real-time pricing on 24 hours markets, rolling news and some of the most developed trading indicators developed are often only available to forex traders. Whilst other forms of trading, such as binary options, claim to provide innovative trading platforms, the reality is that these are still far behind the level of technical analysis which traders can access through forex brokers and the software available.
24 hour trading
Forex is a truly 24 hour market, following the sun around the earth as markets open and close from east to west. The distinct advantage of this is that traders can therefore access forex markets around the clock, without being restricted to market open and closing times. Unlike stockmarkets, which has set opening and closing times when the majority of trading activity occurs, currencies continue to be bought and sold across timeframes in a continuously active market. Even during weekends, when many brokers are not operating, the forex market continues to fluctuate which creates potential trading opportunities for those trading forex to make profitable trades as brokers re-open on Sunday evenings.
