While equities have been and continue to be the primary investment vehicle for the general population, in the last ten years these type of securities have taken on a more speculative nature. During the volatile internet bubble days of the late 90's day trading took hold and many profited, but as the markets cooled traders have realized that the various restrictions and capital requirements necessary for equity trading make short-term and exponential profits increasingly difficult. These day traders then turned to the futures markets for better leverage and liquidity in the. Like the futures markets, spot currency trading is an excellent vehicle for pattern day traders who desire to leverage their current capital to trade. Spot currency or forex trading provides more options, greater volatility and stronger trends than currently available in stock futures indexes. Former securities day traders have an excellent home in spot foreign exchange (forex).

No Exchanges

Centralized exchanges provide many advantages, but by default also create distance and incremental overhead costs between the trader and the market. Technological advances in trading platforms combined with instant and easy access to information by individuals makes an exchange unnecessary and affords the trader lower cost and faster execution.

Minimal influence from Brokers, Hedge Funds or Banks

The high liquidity and massive volume of trades going through the Forex market make it extremely difficult to manipulate or be influenced in a significant way by any single player. Likewise, economist views or research reports while useful information are unlikely to have any major impact on a currency pair.

Thousands of stocks vs 4 major currency pairs

In spot currency trading, you have 4 major markets, 24 hours a day 6 days a week. You have approximately 34 second-tier currencies to look at in your spare time (if you are so inclined). Would you rather spend your days pouring over 100s of company financial reports, filings, management changes, quarterly reports, etc to find the few stocks you want to trade? Just focus on a few currency pairs and then spend your afternoon on the golf course or planning that next vacation.

Commission-free

No commissions period. No clearing fees, no exchange fees, no government fees, and no brokerage fees. FXFor Japan is compensated by revenues from its activities as a currency dealer, including proceeds from buying, selling, converting, as well as holding currencies.

Trade off of your profits

In spot currency trading you can use your open profits to add to your positions. This is not possible in most other types of trading and gives you added flexibility in your trading strategies. It also requires greater risk control, but can be a very valuable tool to leverage good positions into even better ones.

Highly Trending markets

The high liquidity in the FX market offers some of the smoothest trends available in any market. No other market can come close to the amount of monetary volume and participation as the forex market making it a haven for technical traders not having to deal with gaps and price movements, erratic spikes and other choppy market conditions more commonly experienced in the lower volume markets, like futures or options. And, because the foreign exchange market is open from Monday morning to Friday evening, gaps are limited primarily to weekends or when liquidity is reduced due to national holidays.

No Commissions or Hidden Fees

No commissions period. No clearing fees, no exchange fees, no government fees, and no brokerage fees. FXFor Japan is compensated by revenues from its activities as a currency dealer, including proceeds from buying, selling, converting, as well as holding currencies. In the futures market you are not only paying the spread, but you are also paying commission charges, clearing and exchange fees on top of the spread. With FXFor Japan, what you see is what you get, allowing traders to make quick decisions on FX trades without having to account for fees that may affect their profit/loss.

Better Leverage

1% to 2% margin is now standard in the spot FX markets, a much lower rate than futures or options markets. In spot currency trading, customers receive one low margin rate for trades done 24 hours a day. In currency futures trading, the client has one margin rate for day trades and one margin rate for “overnight” positions. This can be problematic for traders and decreases the overall tradability of the currency futures markets.

24-hour Trading

The Forex market is open 24 hours a day, 5.5 days a week. This is due to the fact there is no central exchange and the market flows from one financial hub to the next, Tokyo to London to New York and back to Tokyo. While some futures markets now have near 24hr trading, they suffer from low liquidity and often have trading restrictions. To explain the global effect on the forex market, there are three main economic zones that are linked throughout the world. For instance, when the Pacific Rim markets such as Japan and Singapore begin to slow, the European markets of England, Switzerland and Germany begin. These forex markets are followed by the North American markets of the United States, Canada and Mexico. As the North American markets begin to slow down for the evening, the Pacific Rim starts their trading day again. This example shows that you are no longer limited to trading using a comparatively short, trading day offered by U.S. markets only.