Main Advantages Of Forex...

1. Extremely Liquid Market

With daily traded volume of up to 2.5 trillion on a single day, Forex market is extremely liquid. Concerns should be only limited to whether your market view is correct. If the price level you wish to trade is the current market rate, you can be assured that your order will be completely filled. No worries on partial fill or market depth, due to the high daily traded volume. Trade the currency at your desired price.

Being the largest financial market, you can be rest assured that there will be no manipulation to the market as no single entity can manipulate the market in any direction.
2. 24 Hour Market

Trade anytime you want to with Forex as its open 24 hours, 5 days a week. No market opening or closing, restricting your momentum in trades.
3. Good Trading Opportunities

For traders keen to leverage on the forex market, a daily range of 50 to 300 pips worth of trading opportunities is available for intraday traders.
4. Familiarity

Forex trading is not something unfamiliar to everyone. All of us do currency conversions at some point in our life. Important factors to understand the behavior of forex are, what constitutes to the strength or weakness of the currency. Is it determined by strength of economy? Demand and supply? So, understanding of the forex market is not something difficult.
5. Value of Currency

Consider the risk of a company’s stocks collapsing vs. the risk of a country’s currency collapsing. It should be obvious that currency is a more stable form of investment for trading.
6. Margin Trading

With margin trading, you can trade $100,000 worth of contracts with only $2,000 to $4,000. Yet, the trading opportunity is based on the actual contract size. With a smaller capital outlay, you can free up your cash for other forms of investments or usage.
7. Good Variety of Order Types

Though some traders are concerned that market will slip away while they are resting, causing sleepless nights, the variety of order types available helps to shorten the hours you need to keep monitoring the market. Use limit, stop loss, OCO orders, with time frame of either day or GTC to help you carry out trade effectively.
8. Forex vs Futures

* Liquidity and Flexibility

The spot Forex market statistically shows in 2006 that the volume traded is a whopping $2.5 trillion daily, making it the largest and most liquid market in the world.
Futures contracts are segregated into different contracts that are exchange traded. Forex contracts on the other hand are OTC. Having greater flexibility ensures higher liquidity to your trades. Your trades will always be done exactly at the number of lots you indicated. They will not be done only partially.

* Delivery/ Tenor of Contracts

The tenor of Futures contract is typically 3 months. Which in practice, buyers of futures contracts are advised to square off their positions at the 1st notice date to enjoy greater liquidity. And if traders wish to continue trading in that particular contract under Futures, they should enter into the next futures contract of 3 months validity. You may need to square off your position at a price level that is not to your advantage.*

Forex trading under Phillip futures, however, provides auto-rollover. This ensures that you only square off your position when you desire, without worrying about contract expiry date.

*Based on all things being equal, you have excess margin to cushion the daily mark to market margin requirements.
9. Forex vs Equities

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Trading Hours

Foreign exchange trading under Phillip futures provides trading 24hours a day, 5 days a week. The equities market, are relatively less flexible, as trading is at certain time frames, only when the respective markets are open. This provides more liquidity vis a vis the equities market.

* Nature of Trade

Speculative Trading

If traders are actually looking at trades from a speculative point of view, Forex actually provides more room for speculation. Imagine in the case of equities, you can hold short positions only for 1 month under CFDs. To hold beyond a month, your position will be rolled over with a fee involved. Whereas for Forex trading, you can hold on to your short position for as long you wish, through our free auto rollover, as long as your margin requirements allow. This gives the added flexibility of trading.

Investment Trading

Under shares trading, there is a substantial chance that a company may fold/go belly up. But under Forex trading, if you're looking at currency appreciation, you are basing your investment on the country's fundamentals.

Trading in shares, you're investing in the financial strength and prospect of the company. It entitles you certain percentage of shareholding in the company. Should the company perform badly, your shares become relatively low in value. Trading in forex, you're investing in the economy of the country. It entitles you to money itself. The currency you're investing in is backed up by a whole country's economy. The risk you bear is sovereign risk.

* Margin Trading

Under equities trading, you can do contra (margin trading for 3 days), or CFD (margin trading for a month). Under Forex trading, its margin all the way. Leverage on the margin. Provide only the maintenance margin required for your necessary trades, and free up your cash. From another point of view, leverage trading will allow you to maximize your trading opportunities.