•     Spot Forex traders can never have a debit balance
•     The Forex market is extremely liquid
•     Rollovers can be profitable for Forex traders
•     No commissions or exchange fees
•     Your money works harder with up to 100 to 1 leverage
•     Forex can be traded 24 hours a day, 5 days a week



Spot Forex traders can never have a debit balance

The margin requirement of a Forex account is the amount of collateral required for an investor to take on a trade. If funds in the trading account fall below this requirement, the Forex service provider will close all open positions. This eliminates any possibility of a debit balance in the account. If there was a major catastrophic turn in the market against the investor, he has peace of mind in knowing that he can never lose more than the amount of money in his account.

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The Forex market is extremely liquid

The Forex market is the largest and most liquid in the world, with round-the-clock trading. Because of its size it can absorb transaction sizes and trading volumes that dwarf the capacity of the Futures market. This near-perfect liquidity means that stop-orders and liquidation of positions are executed without slippage most of the time. It is almost always possible for investors to make their desired currency trades.

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Rollovers can be profitable for Forex traders

At 5.00pm EST open positions in an investor’s account are automatically rolled over to the next business day and the settlement date becomes two days in the future. As with Futures trading, rolling over a position includes some carrying costs, however in Forex trading this cost is determined by the difference in the interest rates for the two countries. Typically, if the interest rate of the currency the investor is holding (his long currency) is higher than the one he traded for it (his short currency), then his “cost” is actually a gain.

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No commission or exchange fees

Two costs of Futures trading are commission and spreads (the difference between the bid/buy and offer/sell price at a point in time) which may vary dependent on various circumstances (such as whether a trade is happening “after hours”). Spreads for different currency pairs are generally fixed and do not change with market movement. There are no commission or clearing fees payable for trading currencies online, although there may be fees for additional services.

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Your money works harder with up to 100 to 1 leverage

Your margin is the amount of collateral required for you to take on a trade. It allows traders to take on leveraged positions with a fraction of the full equity necessary to fund the trade. In the equities markets the margins required are usually higher. The margin in a Forex account may be set as low as 1%, effectively allowing leverage up to 100 to 1, or control of $100,000 in currencies for every $2,000 as margin.

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Forex can be traded 24 hours a day, 5 days a week

Unlike other financial markets, Forex is a 24-hour market and investors can respond to news and events by trading at any time they occur. The market is open from Sunday 17:00 EST (5:00PM New York), to Friday 16:00 EST (4:00PM New York).

Please note: MFGtrader trading hours are from Sunday 17:10 EST (5:10PM New York time), to Friday 16:00 EST (4:00PM New York time).

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