Why Trade Forex?

Learn why Forex trading is popular, explore it’s benefits, including high liquidity and 24/5 market accessibility.

Forex trading, also known as foreign exchange trading, is one of the most actively traded financial markets in the world. At Ohio Markets, you can trade Forex through Contracts for Difference (CFDs), allowing you to speculate on currency price movements without owning the underlying currencies.

This page outlines the key benefits of Forex CFD trading, compares forex with stock markets, and introduces the free tools and resources available at Ohio Markets. Whether you’re new to trading or an experienced market participant, this guide explains why trading forex via CFDs may be a suitable option for you.

Top Benefits of Forex CFD Trading

Forex CFD trading offers several advantages that attract traders globally. From deep liquidity to flexible trading hours, here are the key benefits.

High Liquidity

The forex market is the most liquid financial market in the world, with daily trading volumes exceeding $7 trillion. High liquidity allows traders to enter and exit positions quickly, even with larger trade sizes, often without significant price slippage.

For CFD traders, this typically results in:

Tighter spreads
Faster order execution
Reduced risk of market manipulation compared to smaller markets

This makes forex CFDs well-suited for both short-term and longer-term trading strategies.

24/5 Market Access – Trade Around the Clock

The forex market operates 24 hours a day, five days a week, providing exceptional flexibility for traders across different time zones. You can trade whenever it suits your schedule, although liquidity may vary during quieter periods or around major economic announcements.

The forex market is divided into four major trading sessions:

Trading Session	Opening (UTC)	Closing (UTC)	Popular Pairs
Sydney	22:00	07:00	AUD/USD, AUD/JPY
Tokyo	00:00	09:00	USD/JPY, EUR/JPY
London	08:00	17:00	EUR/USD, GBP/USD
New York	13:00	22:00	USD/CAD, USD/CHF

The highest liquidity typically occurs during session overlaps, particularly between London and New York, creating increased trading opportunities.

Trading with Leverage

Forex CFD trading allows the use of leverage, enabling traders to control larger positions with a smaller amount of capital.

For example, with 30:1 leverage, a 1% price movement in a currency pair may result in a 30% gain or loss relative to the invested capital. While leverage can enhance potential returns, it also significantly increases risk. Losses may exceed your initial investment if not properly managed.

Traders should fully understand how leverage works and apply robust risk management strategies when trading leveraged products.

The forex market is divided into four major trading sessions:

Trading Session	Opening (UTC)	Closing (UTC)	Popular Pairs
Sydney	22:00	07:00	AUD/USD, AUD/JPY
Tokyo	00:00	09:00	USD/JPY, EUR/JPY
London	08:00	17:00	EUR/USD, GBP/USD
New York	13:00	22:00	USD/CAD, USD/CHF

The highest liquidity typically occurs during session overlaps, particularly between London and New York, creating increased trading opportunities.

Low Trading Costs and Transparent Pricing

Forex CFD trading is generally cost-efficient compared to many other financial markets. Trading costs typically include:

Spreads (difference between buy and sell prices)
Possible commissions, depending on account type
Overnight financing (swap) fees for holding positions overnight

Ohio Markets aims to provide competitive spreads and transparent pricing. Always review the full fee structure before trading.

Opportunity to Trade Rising and Falling Markets

One of the key advantages of forex trading via CFDs is the ability to potentially profit in both rising and falling markets.

Go long (buy) if you expect a currency to strengthen
Go short (sell) if you expect a currency to weaken

For example, if you believe the Euro will rise against the US Dollar, you may open a long position on EUR/USD. If you expect it to decline, you may open a short position instead.

This flexibility allows traders to respond to different market conditions, though it’s important to remember that forex trading involves substantial risk.

Trade a Wide Range of Currency Pairs

The forex market offers extensive choice across different currency pairs:

Major pairs – High liquidity (e.g. EUR/USD, GBP/USD, USD/JPY)
Minor pairs – No US Dollar involved (e.g. EUR/GBP, GBP/JPY)
Exotic pairs – Major currency paired with an emerging market currency (e.g. USD/TRY, USD/ZAR)

With Ohio Markets, you can trade a broad range of major, minor, and exotic currency pairs via CFDs.

Regulated Broker

Operating under strict regulatory and compliance standards.

Segregated Client Funds

Client funds are kept separate from company operating funds.

Insurance Protection

Additional protection for eligible client funds.

Global Traders

1M+ Clients Worldwide Trusted by traders across 30+ countries.

Forex vs Stocks: Key Differences

Forex CFD trading and stock CFD trading differ in several important ways.

Market Opening Hours

The forex market operates continuously throughout the week, while stock markets follow fixed exchange hours.

Market	Trading Hours
Forex Market	24 hours, 5 days a week
NYSE	9:30 AM – 4:00 PM (EST)
LSE	8:00 AM – 4:30 PM (GMT)
TSE	9:00 AM – 3:00 PM (JST)
ASX	10:00 AM – 4:00 PM (AEST)

Forex traders benefit from uninterrupted access, while stock traders are restricted to local exchange hours.

Liquidity

Forex is the most liquid market globally, ensuring continuous price action and tighter spreads for major currency pairs. Stock liquidity varies depending on the company and market conditions, with smaller stocks often experiencing wider spreads and price gaps.

Volatility

Forex markets tend to react quickly to macroeconomic data, interest rate changes, and geopolitical events, resulting in frequent price movements. This volatility creates opportunities but also increases risk.

Stock markets are influenced more by company performance, earnings reports, and sector trends, and typically move more gradually compared to forex—although sharp moves can still occur.

Free Trading Tools and Resources at Ohio Markets

Ohio Markets provides a wide range of free tools and educational resources to support traders at every level, including:

Market analysis and insights
Educational content and webinars
Advanced charting tools
Social and copy trading features

New traders can practise risk-free using a demo account, while experienced traders can access live accounts with real-time pricing and professional trading platforms. Multiple account types are available to suit different trading styles and capital requirements.