Five Reasons Why Retail Forex Is Becoming More And More Popular
In 2008, many small investors got their finger burnt when they lost their lifetime savings in the stock market crash. Many turned towards the retail forex market. The major reason for the growing popularity of retail forex in the investors is its 24 hours liquidity that means that retail forex market is open 24/5 plus no commissions per trade with tight spreads.
If you have some experience of trading stocks or bonds than you can esily switch to forex trading as the fundamental analysis and the technical analysis basics are almost similar. Now, many sophisticated investors are also turning towars forex as well.
In the last decade rapid technological advances were made meaning that there is now more and more price tranparency in the forex market with better risk management using the stop loss and the trailing stops.
Managed forex account also make forex trading easy for many people who don’t have the time to learn forex trading. These managed forex accounts give them the opportunity to profit from the forex market without having to trade it. These accounts are managed by professional traders on behalf of their clients who have full access and control over their capital in the account.
In the last decade, algorithmic trading systems became more and more sophisticated. These automated trading systems are also know as Expert advisors or Forex Robots. Over the last few years, forex robot developers have been able to develop a number of good robots that have been giving consistent performance.
In December 2009, the first ever Forex Robot World Cup (FRWC) was held. FRWC had a cash prize of $150,000 and hundreds of robot developers participated in the competition. This was the first ever live trading competition.
Forex robot developer from Croatia won the cash prize of $100,000. The next round of the FRWC will be even bigger than the first and will start in a few months time. Transparency and tough participation rules meant that the robots that took part in this competition had to really prove themselves in live trading. This live trading started in December and ended in January.
What this all means is the future of retail forex trading is exciting. These robots can be used by anyone. Even those who have never traded forex before can use these forex robots to make money from the comfort of their homes.
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