7 Benefits Of Trading Forex With XFR Financial Limited
In the recent years, there have been stories of people making a fortune trading forex. That, coupled with the financial meltdown of 2008 has made people to seek forex trading as an alternative investment method. If you are an investor looking to get into trading forex, here are some seven benefits XFR Financial Limited offers over other financial markets.
- Size Of Market
In terms of transaction volume, the forex market is the largest financial market globally. In terms of liquidity, the forex market transacts around $2 trillion daily, which means that as an investor, you can easily enter and exit trades. The large size of the market also makes it hard for people to try to manipulate the market for selfish gains.
- Easy Entry With XFR Financial Limited
If you wish to get into trading forex with XFR Financial Limited, you can get started with as little as $250. You do not even need a massive capital outlay to start making great returns on your investment. Anybody can get into the forex market.
- Profit Potential
This is the primary motivation for every investor and the currency market offers plenty of it. You can make money in the currency market whether prices are going up or down.
- Tax Benefits
Currently, the government taxes short-term capital gains at the current rate while taxing long-term capital gains at just 15%. It is obviously much better to pay less in taxes. In the currency market, it does not matter whether you make your gains in the first minute after you enter the trade or after one month. The first 40% of your profits will be taxed as short-term capital gains while the remaining 60% are taxed as long-term capital gains.
- Increased Leverage
The amount of leverage available in the currency market is perhaps the most attractive benefit it offers. More leverage means that you can control a large holding of currency without having to put down a lot of money upfront. For example, with 100:1 leverage, you can control $50,000 in the currency market with just $500 in your own XFR Financial Limited account. This means that you can realize all the potential profits of the $50,000 position by risking only a small amount of your own cash.
- Trading Forex Hours
The currency market operates 24 hours a day for almost 7 days a week. This means that you will never lack the time to trade forex regardless of how tight your schedule may be. In addition, different currencies are active at different times of the day giving you even more opportunities to generate a profit.
- Guaranteed Stops
When trading with XFR Financial Limited, you have the ability to determine the price at which you would like to enter the trade and the price that you would like to exit the trade. The forex brokers normally guarantee these prices. There are even stop loss orders that you can place for the position to close itself out automatically once price reaches a particular level.
In conclusion, this article has looked at some of the benefits associated with trading forex. Now that you understand the benefits it has to offer, you should consider trading currencies as part of your investment portfolio.