Which one will you trade? Got the time to stay on top of so many companies?
With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs.
Aren’t seven major pairs much easier to keep an eye on than thousands of stocks?
Look at Mr. Forex. He’s so confident and sexy. Mr. Stocks has no chance!
That’s just one of the many advantages of the forex market over the stock markets. Here are a few more:
The stock market is limited to an exchange’s opening hours.
For example, in the U.S., most stock exchanges open at 9:30 am EST and close at 4:00 pm EST.
The forex market is a seamless 24-hour market.
Most brokers are open from Sunday at 5:00 pm EST until Friday at 5:00 pm EST, with customer service usually available 24/7.
With the ability to trade during the U.S., Asian, and European market hours, you can customize your own trading schedule.
Minimal or No Commissions
As a lot of online stock brokers now offer zero commissions, so this is now less of a factor.
Most forex brokers charge no commission or additional transaction fees to trade currencies online or over the phone.
Combined with the tight, consistent, and fully transparent spread, forex trading costs are lower than those of any other market.
Most brokers are compensated for their services through the bid/ask spread.
Higher Trading Volume and Liquidity
The forex market sees an average daily turnover of $6.6 trillion.
The stock market sees a fraction of this.
Short-Selling without an Uptick
Unlike the equity market, there is no restriction on short selling in the currency market.
Trading opportunities exist in the currency market regardless of whether a trader is long OR short, or whichever way the market is moving.
Since currency trading always involves buying one currency and selling another, there is no directional bias to the market. So you always have equal access to trade in a rising or falling market.