Forex Trading vs. Stock Trading
Online trading is much popular now a days and its growing high day by day. There are several types of trading are available. You have to choose the best one for you as your future career. Forex and stock trading are much popular than others. But, there is a huge difference between Forex trading and Stock trading. However you need to choose a right platform that is suitable for you. In this article, I will try to focus in every point that makes them individually unique.
Stock trading is a traditional trading system to make huge profits from stock markets. We all know that, the stock market can give you huge profits compared to any other markets. An investor can make double of your investment from stock-trading. But beware that, it is not the easiest market to practice trading. You have to choose a profitable company from the thousands of companies. And it is very difficult to recognize which industry will return you more than another.
Forex trading is a type of currency trading. The market is very big where trading of currencies take places. It is also a popular form of trading. The Forex market is an open global market where anyone can participate with low-investment. It is easy to learn Forex trading with the help of internet. You can start trading without having any experience.
Forex and stock trading: Differences
Trading hours: Everyone wants to get a job with flexible scheduling. In stock trading, stock market operates on a strict time-schedule. So, you have to work 8 hours on average in a day. Generally, stock markets are open in 9 to 10 am and closes on the day about 5 to 8 pm. This timing varies in different regions or sub-continents. On the other hand, no fixed schedules stuffs in the Forex Market. Anyone can choose a flexible time. But the time of trading will depend on the currency you choose. And for this reason, you can easily customize your flexible schedule.
Marketplace: In stock trading, markets are geographically tied-down. An investor can only trade or able to make investment in their regional stock markets. The Forex marketplace is very big because it is globally recognized. In Forex trading, it is the worldwide trading marketplace. You can trade any currencies as you wish. In fact, the Forex market gives you the opportunity to trade in the global market from you home.
Trading Speed: In traditional stock trading, a trader has to put trade on the trading-floor, where it takes several minutes to place the order. But in Forex trading, a trader can use fast computer program to place a trade on a Forex trading signal. It is too fast that, a trader may miss a trade during the execution time of a trade.
No middleman: Stock trading is centralized. That’s why there is a chance of involvement of a middleman. A middleman can cost you some money or your valuable time. In case of Forex trading, the trading system is decentralized. There is no scope for a middleman in forex trading.
Financial investment: In stock trading, a large investment is required, however, in Forex trading you can make short investments. In stock trading most brokers charges a high rate for their services. But in Forex, most brokers offer no charge or commission.
Trading in both Forex and stock market can be profitable if you have the ability to analysis the market trend, industry fundamentals and of course the understanding of the core concepts of online trading. And it is very important to choose the right platform before entering into trading.