Forex vs. Stocks Trading
There are just about 4,500 stocks listed on the NYSC (New York Stock exchange). An additional 3,500 are listed on the NASDAQ. Which one will you trade? Do you have the time to stay on top of so many companies?
In forex trading, dozens of currencies are being traded, however most of the professional traders trade the four major currency pairs. Aren’t four pairs much easier to keep an eye on than thousands of stocks?
Here are just some advantages of forex market over the stock markets:
The foreign exchange market is a 24-hour opened market. The majority brokers are open from Sunday at 8:00 pm GMT to Friday at 8:00 pm GMT, although customer service normally available 24/7.
Almost every forex broker charges ‘no commission’ or extra fees to trade foreign exchange market.
Low transaction costs
Combined with the tight, steady, and very transparent spread, forex trading costs are lower than any other markets. Nearly all brokers are rewarded for their brokerage services by the bid/ask spread.
In forex market, trades are immediately executed under typical market conditions. With these regular conditions, normally the price shown when you perform your market order is the price you get.
Foreign exchange trading eliminates the middlemen and allows traders to trade straight with the market responsible for the pricing on a certain currency pair.
No one can manipulate the market
The forex market is so big and has so countless participants that no single person or company can manipulate the market price for an absolute period of time.
In the conflict between forex vs. stocks, the scorecard between Mr. Forex and Mr. Stocks proves a strong victory by Mr. Forex!