What are the Pros and Cons of Forex Trading?

**The Pros of the Forex Trading:-**

1. Foreign exchange is a global market that never sleeps. It is active for 5 days in the week and 24 hours a day. It means that you don’t have to adjust your plan for the market opening hours, as you can trade all day long Liquidity.

2. The foreign currency exchange market is huge and spread all over the world. Now the average daily volume exceeds USD 3.2 trillion. Technology has made this market accessible to almost everyone, and retail businessmen have gathered in the foreign currency exchange market.

3. Foreign currency exchange margin ratio appears to be higher than the margin ratio available in equity because it is more liquid.

4. The difference between spread, bid and offer value in foreign exchange, is very small. Simply compare the 2-pip price in EUR / USD with the most active and liquid equity issues

5. Most OTC foreign currency exchange businesses are commission-free, and the inbuilt costs of trading with such narrow spreads are much lower than other assets such as equity.

6. In the equity market where the client does not have the liquidity to sell before buying. According to the margin, the trader has the same capacity while performing position sales or purchases in the spot market. In spot trading, when you are selling a currency, you are essentially buying another.

**The Cons of Forex Trading:-**

1. Forex is decentralized and de regularized market, it is completely dominated by brokers. When a brokerage is involved in our trading it often increases the lack of transparency and less outcome of the investment.

2. This is also a disadvantage for the forex market because this market never sleeps and thus the same goes for the investors also. Because in the forex market the market trend gets updates each and every minute because of which the investors have to be updated every time.

3. Another disadvantage of the Forex trading market is that There are a lot of scammers in this market who are always ready to loot the money from the investor. So the investor has to be very careful about searching for a reliable, a trustworthy person who won't cheat and can give better returns.