Although the forex market is by far the largest
and most liquid in the world, day traders
have up to now focused on seeking profits
in mainly stock and futures markets. This
is mainly due to the restrictive nature of
bank-offered forex trading services.
Advanced Currency Markets (ACM) offers both
online and traditional phone forex trading
services to the small investor with minimum
account opening values starting at 2000 USD.
There are many advantages to trading spot
foreign exchange as opposed to trading stocks
and futures. Below are listed those main advantages.
1. Bid/Ask Spread rates
Spread rates have tightened dramatically
in the last years. Most online forex brokers
offer a spread of 5 pips on EURUSD which is
the most widely traded and liquid currency
pair. ACM offers a 3 pip spread on EURUSD.
In stock trading, only liquid stocks offer
tight spreads. Those spreads often represent
on average between 0.04% and 0.06% of the
value of the stock. In comparison ACM offers
a 3 pip spread on all major currencies, this
equates to approximately between 0.02% and
0.03% on the underlying dollar value.
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