Wednesday, February 22, 2012
 

Forex vs Stocks

First of all, what is Forex? This is a short version of the Foreign Exchange. It is also called FX and 4X, but regardless of the name you use, is the largest financial market in the world. From 1997 until late 2000, daily Forex trading has skyrocketed from $ 5 billion to more than $ 1.5 trillion ..

Let’s look at some of the reasons why Forex trading is rapidly gaining popularity over other markets.

Trading hours: The Forex market is traded 24 hours per day from approximately 07:00 ET on Sunday until around 03:00 ET on Friday. The stock market traded only Monday to Friday with limited hours.

Liquidity: trading the Forex market during 1500000000000 $ every day while the stock market is only about $ 200 billion. There are only seven major currencies traded in Forex, while there are more than 40,000 stocks from which to choose.

Commission: No commission is charged on the Forex market while the stock charge high commissions and transaction costs.

Leverage: The Forex market offers great leverage power. Brokers usually offer up to 400:1 from 100:1 leverage. This means a trader using 100:1 leverage you control $ 100,000 with only $ 1,000 margin. Stock market investors pay full price for the shares when purchased unless they have a margin account and margin leverage with usually only 2:1.

Low Minimum Investment: Minimum initial investment to open a Forex trading account is as low as $ 300. Most stock brokers require several thousand dollars as a minimum to open an account.

This is a perfect market. Foreign Exchange trading has long been recognized as a superior investment opportunity by major banks, multinational corporations and other institutions. Now the Internet has driven Forex trading between private individuals so. Trade from home, office, or almost anywhere in the world. Trade almost anytime day or night. Working part time or full time.

It is clear that the Forex market offers great opportunities for those willing to invest energy, focus, and little money.

It is difficult for a new Forex trader to become successful in the Forex market without understanding the basics and how it works. This knowledge can be gained in a free Forex training program.

 

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