One of the important aim of trading is earning lots of money. Lets say Mr. A decides to enter trade world. The first thing he will do is look in the market for options of trading. He is new & hence will get perplexed by seeing so many options in the market right from Stocks, Futures, Commodities, Forex & so on. I was once Mr A and I am glad that I have chosen Forex as my money making platform. If we compare Forex with Stocks we can note down the following advantages of forex over later.
- Stock market involves different Stock Exchanges and thousands of stocks of various companies. To choose the stock you require to study different companies, their statistics, different sectors, Industries & what not. Whereas, in Forex, there are only currency pairs & that too you can stick to only majors i.e. only four currency pairs just like most of the traders. So it is quite easy to concentrate on four pairs instead of thousands of stocks.
- Forex market has the highest Liquidity of all markets. One day trading in forex approximates one month trading volume in stock market.
- In stocks,Commissions are charged per transaction whereas in Forex, transaction cost is lower comparatively & brokers get their share through spread.
- In stocks the trading time is fixed for few hours a day whereas in Forex, you can trade 24-hours a day for 5-days a week. No matter what your schedule is, you can always anywhere trade the market at your convenience. Brokers also provide you 24x7 customer service.
- Markets where there is centralization puts extra burden of charge on a trader due to middleman involved. In forex, due to decentralized market, there is no middleman involved as you are trading directly with market. Brokers get their share through spread in buying & selling price. But because of competition you can assure yourself of getting lowest or best deal in spread.
- Stock market can be influenced. Brokers & Analysts work together & may influence a stock or favor a company whereas in Forex, these people simply cannot influence or control the market as it is a so huge in size & decentralized.
- At last, the attractive factor about Forex to me is you can make money both ways i.e. no matter where currency is heading. Buying when currency pair is supposed to appreciate and selling when currency pair depreciates.
