Is It Better To Trade Forex Or Stocks?

These days, there are wide spectrum of trading instrument where traders will have the freedom to choose of what they are going to trade in. If you want to start with forex trading, you are probably thinking of which means to trade, whether stock market or trading forex. It may be a very daunting task to figure out which type of market is best to trade. If you are still doubting which one is a best choice, well, the answer is just around the corner—with forex trading. Let’s see why trading forex is much better over stock market:

Trade Forex Or Stocks

Market size

One of the largest financial market in the world is forex trading. Forex market overshadows both the ‘stock’ and ‘future’ market. In fact, forex market has an average turnover of $4 trillion in excess daily as stated in the Bank of International Settlement—making it the most ‘liquid market’ across the globe. The high liquidity provides traders with the full freedom to open and close short & long position in derivatives or spot transaction regardless of the size.

Easy access

With the development of technology which is inevitable in our information-driven world, markets are becoming more accessible for any investors, thus also opening your door to many opportunities to make money. Since the initial deposit for starting/opening a currency trading account is low, anyone can easily participate on the Forex market.

Round The Clock Market

Forex Market are open 24 hours, thus you can monitor everything all at once. The market is open round the clock and for 5 ½ days per week. The forex market opens in Sydney every 5pm EST on Sundays and followed by the opening in the markets in Tokyo, London and closes at 4pm EST in New York. Before the market in New York close, the market in Sydney opened once again—thus making it available round the clock.

No Commission

Unlike security market in currency trade, there are NO RESTRICTION on short sales in forex trading. The opportunities for forex trading exist regardless of the traders opting to buy or sell, or the market fell or rose.

Instant Execution

Since forex market is known as a decentralized market, the ‘order placed’ while trading forex doesn’t have to go though in central exchange just to be executed. While trading futures or stock whenever a trade is being placed, it needs to undergo first to the exchange before order can be filled, thus, resulting to the involvement of a middleman. Having a middleman that will negotiate between the buyer and the trader of a security market can only cost traders with additional fees, or untimely execution of the trades.