Pros and cons of forex market?

The forex market could make traders being rich, but possible to make traders being poor, there are various stories in the forex business, some traders may be successful, others may be fail, all depending on the skill of each trader.
 
There are a lot of hurdles which we have to clear in order to become successful and once anyone is successful no body actually see his dark failures.
 
The foreign exchange market offers traders a variety of trading options. Traders can trade hundreds of currency pairs. They also have the option of making spot transactions or entering into future agreements. Futures agreements also offer contracts of different sizes and maturities to suit the needs of foreign exchange traders. Therefore, the foreign exchange market offers an option for every budget and every investor with different risk appetites.
 
Every market has its pros and cons, and forex market is no different. But, I believe the pros and cons depend upon the trader’s skills. Those who win trades won’t find any drawbacks in the market whereas the situation is completely opposite for those who keep losing trades. So, what’s pro for one is a con for another.
 
If you're a deep-pocketed hedge fund or an unusually skilled currency trader, forex trading can make you rich. But for the average retail trader, Forex is not a shortcut to wealth, but a rocky road to huge losses and potential poverty.
 
Pro: Variety of exotic pairs to trade : Con: Volatility with exotic pairs, less liquidity with exotic pairs and wider Bid ask for exotics
Pro: Huge leverage : Con:Huge leverage
Con: IT IS A OTC product!
- Not many Options ( Call put ) available to trade on FX pairs ( Saxo offers some * )
Mostly unregulated or thinly regulated resulting in dodgy players Serach for failure of REFCO usa, and banning of FXCM usa
* Market Maker model : you are likely playing against the market maker who is also the so called Broker A clear conflict of interest, Imagine if CME or NYSE or LSE itself plays against you!

Alternative to reduce some of the Cons:
Trade FX futures on regulated exchanges
 
Pros of the forex market are the easy accessibility, high liquidity, a number of currency pairs available for trading, market being open round the clock and low initial deposits, whereas the cons include high volatility, uncertainty, risk of leverage etc.
 
HeavLeighGill said:
Pros...it's something that everyone can access and there is a potential to make money.
Cons...too many people open an account because of the accessibility and you could lose your initial investment or more.
More...
Yes, many people enter into forex because the opening of an account is very easy but most of them lose because of a lack of knowledge and skills.
 
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