7. Low transaction costs. The difference between Bid quote (the price at which you will sell, if you want) and Ask quote (the price at which you will buy, if you want) now about 0.02-0.05% (2-5 pips) on major pairs and about 0.1% on exotic pairs. And this is even for average accounts with a value of only $500-2000. For larger accounts it could be as low as 0.005-0.01%. The biggest participants can sometimes trade without any spread at all.

8. Huge competition among brokers and other providers of trading services leads to free software and free “demo” access to FOREX market. It means that absolute majority of retail brokers provide their clients with free (without any delay in quoting) access to FX market. This access is based on free software that besides quotes per se, usually also includes charting services and news. But there is more to come. Also the majority of brokers let you practice in trading on demo accounts absolutely free.

Newbie: And what is a demo account?

Christopher (Me): Demo accounts contain virtual money, but the quoting and the process of trading are the same as on a real account using real money. The advantage of demo accounts is in the possibility of adding more money at will or even starting with a fresh account. This lets you practice, learn the trading software, and get the necessary confidence for trading.