Reasons why Forex is the best option for Retail Traders
Forex is liquid
80% is speculative in nature
Traders hoping to make profit from rising or falling prices
Easy to short
There are no restrictions on short selling in Forex.
The huge liquidity and speculative nature makes it easy to open a short position.
If you wanted to short a stock, you’d have to call your broker and hope that they’d have the shares to lend you and that they’d be willing to lend them to you so that you can open a short position.
Lots of countries actually have restrictions on short selling, so they might not even let you short sell stocks.
With Forex being a self-regulating and very large market short selling is very easy to do.
Low Cost
Because the market is so large, there are brokers showing up all the time and the prices of trading are going down as they compete.
The average EURUSD spread is 1.2 pips; if you were to open a 1 Lot position with a 1.2 Pips Spread your cost would be $12 USD
Leverage
Brokers offer a lot of leverage on Spot FX
Margin requirements as low as 0.2%
Limited Exposure to Fundamentals
With Forex we can look at the economic calendar and see when particular news releases will be coming out, like Non-Farm Payrolls and rate decisions
Whereas with equities we’ll know when the earnings data is coming out , but you won’t know when a company is going to announce that they’ve gone bankrupt or that there’s a change of CEO, or that they’re under investigation. This means that you’re totally exposed to fundamentals outside of your control.
In Forex the vast majority of fundamentals that move the market are scheduled and can be predicted