Five Reasons Why Retail Forex Is Becoming More And More Popular

By Ahmad Hassam

With the stock market and other financial markets down, retail forex market continues to experience explosive growth that is expected to last beyond 2010 for many years. The primary reason for this continued growth is due to the fact that sophisticated investors are turning towards forex trading as a way to diversify their portfolios. This is being driven by the 24 hour liquidity, tight spread and easy and ready access.

Another reason for most of the sophisticated investors taking up forex trading is the fact that it is similar to bond and equity trading in many ways. Those investors who have been trading equities and know something about fundamental analysis and technical analysis can easily switch to forex.

Recent advances in technology means price transparency and a better trading experience with the use of stop loss and trailing stops. What this means is that traders can execute their trading plans using a combination of these orders to better manage their currency risk.

Managed forex account also make forex trading easy for many people who don't have the time to learn forex trading. These accounts are managed by professional traders on behalf of their clients who have full access and control over their capital in the account. These managed forex accounts give them the opportunity to profit from the forex market without having to trade it.

The last and one of the most important reasons for the increased popularity of retail forex is the increasing sophistication of algorithmic trading systems popularly known as Expert advisors or Forex Robots. More and more investors are using these automated trading systems in making money online.

In December 2009, the first ever Forex Robot World Cup (FRWC) was held. This was the first ever live trading competition. FRWC had a cash prize of $150,000 and hundreds of robot developers participated in the competition.

Transparency and the stringent criteria for the competition is going to develop more trust in the use of these robots in the future. The second round of FRWC will start in the next few months and is expected to be even bigger than the first one. The increasing sophistication of these forex robots means that more and more people can trade forex on autopilot from the comfort of their homes now.

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. - 31876

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