When people first start wanting to get into online and day trading, they find it hard to choose between all the different trading instruments that are available in the marketplace.
They can choose to either go with stocks, options, futures, forex, forwards, and a host of other options. It's difficult to know which is best for you until you start trading them.
For stocks and futures have a lot of good things going for them, but they also have a lot of bad things going for them as well.
For instance, with stocks and futures, you will need to have a lot of money to get started. It's not meant for those that have limited funds.
Stocks don't really give you as much leverage either. Even with cheap stocks, ($10 and under) you could only stretch your money so far. For example $1000 will only be enough to buy 100 shares of a stock worth $10, and with the low rate of return that most stocks bring, it would take a long time for that investment to really pay out.
Futures are expensive to venture into, there are those that cost more than others. If you look at the S&P e-mini, you can see that if you don't know what you are doing, you can lose all that you have invested very quickly. With the single tick's are worth $12.50 each, you have to make sure that this is the right choice for you or you will lose everything very quickly.
But forex, is just perfect for all the newbies in the trading world.
The trade markets are open 24 hours a day 5 days a week. The only time they are closed is on the weekends. With the trade markets being open 24 hours a day this gives traders who can't watch the markets during the day, the opportunity to their trades chart when they have the time. So people who trade can do this day or night.
For people who are just beginning in the trade business, some brokers will let them open mini and micro accounts. That way you will not be risking much per trade in the beginning.
Low Minimum Account Deposits: Most forex brokers allow you to set up a brokerage account with as little $250.
Diversification: You have your choice of dozens of currency pairs in which to trade.
