Top 4 Advantages of Forex over Stocks

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Replied by CentsibleSaver on topic Top 4 Advantages of Forex over Stocks

Has anyone else noticed all the Forex scams that are popping up on facebook? They very closely mimic MLM bots. My feed is full of Forex investors with get rich quick schemes.
2 years 2 months ago #1

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Replied by JGibbs on topic Top 4 Advantages of Forex over Stocks

I tried my hand at Forex trading through an online platform that allowed users to practice before investing real money into it. I'm very thankful it was just practice or I would have lost a lot of money. I understood the rules, but could not come out on top.
2 years 2 months ago #2

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Replied by Joker on topic Top 4 Advantages of Forex over Stocks

I agree with you all. The Forex is risky and unless you are a very informed buyer or seller, practically an economic genius in the countries you are trading, and want to watch it every day, then you might not want to go this way. I know that I am not about to go really in depth into any of it.
2 years 2 months ago #3

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Replied by FrankN on topic Top 4 Advantages of Forex over Stocks

Wanderer wrote: Appreciate your insight into Forex investing. After you called out some important point ... I know that I lack the knowledge to do Forex Investing.


I think forex investing is much more difficult to invest in than stocks.
2 years 5 months ago #4

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Replied by Wanderer on topic Top 4 Advantages of Forex over Stocks

Appreciate your insight into Forex investing. After you called out some important point ... I know that I lack the knowledge to do Forex Investing.
2 years 6 months ago #5

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Replied by Moneyes on topic Top 4 Advantages of Forex over Stocks

I wouldn't say that Forex is easier to follow than a typical stock. They are both hard, but in different ways.

If you want to make money trading foreign currencies, you need to understand the economies of both countries in the pair you're trading.To do that, it helps to know the country itself and why the economy is what it is. I'm an American and have lived here for 50 years. There is no way I would attempt to work a Yen/Duetchmark pairing because I know ziltch about either one. A Dollar to Rupee pairing, or vice versa.......I would give that a shot because I have done extensive research on the Indian economy for the past year. That, and India is a Democratic society. Don't ask me why, but I think that's an important thing to factor in when working the Forex market.
2 years 6 months ago #6

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Replied by FrankN on topic Top 4 Advantages of Forex over Stocks

I would say for the majority of people, Forex investing is not for you. Unless you have a thorough knowledge of it, I would recommend staying away.
2 years 6 months ago #7

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Replied by Goldbug on topic Top 4 Advantages of Forex over Stocks

Forex can be very risky. Many of the banks' traders only focus on one or two currencies and become absolute specialists. It is easy to get into, I mean at the really basic level you can just take some cash to your nearest bureau and buy currency, but the costs are high. Also, shares have dividends, providing income if you are using a long-term buy-and-hold. If you're not up to managing your portfolio every day, forex might not be for you.
2 years 7 months ago #8

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Replied by FrankN on topic Top 4 Advantages of Forex over Stocks

Again I would strongly recommend to do thorough research before investing any money in forex trading.
2 years 8 months ago #9

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Top 4 Advantages of Forex over Stocks was created by adamsmiths

Which is the better market to trade, the foreign exchange or the stock? Well, if you are an experience trader, you will make money regardless of the market and as long as there are sellers and buyers in the market. It is always best to stick to the market that you know best, have tested and are comfortable to trade in. there are certain features of the forex market that make it more preferable market to trade, as compared to other markets. Some of these are ease of access, liquidity, flexibility, availability of information, sensitivity to outside events and time constraints. Some points are discussed below, that shows how the forex market is better than the stocks. (Information credit: easyMarkets

1. Liquidity

In the whole world, the forex market is the most liquid. The volume of trade in the forex market is far more than the combined volume of all the stocks markets. Also, throughout the trading day, the liquidity stays high in the forex market.

2. Position taking

While trading stocks, there are very few people who are interested in selling short stocks, as the core of trading stocks is investing in a longer term. Sometimes, for taking short positions, speculators get criticised. It is much easier to go short a certain currency in the case with currencies. This is because; selling short a currency is psychologically more acceptable.

3. Easier to follow

In the forex market, there are different major pairs to trade and you can even follow the news of those pairs. This is a great advantage of the forex market. On the contrary, in the stock market, you get bombarded with information about thousands of stocks, each belonging to their own sectors. You need to do a lot of research while trading stocks and for a single person, this is extremely difficult.

4. Influence from speculators
In the stock market, speculators’ movements are followed closely by different industries and market analysts. These speculators may operate with a large amount of capital, which is enough to cause whipsaws in less liquid and smaller markets. But in the forex market, the vast size of the market along with the liquidity of the major currency pairs, make it less vulnerable to the pressure that is caused by followers of individual analysts.

In conclusion, it can be said that the foreign exchange market provides you with an accurate and fast execution because of its highly liquid environment, where you can trade 24 hours a day with low spreads. You can use very safe as well as flexible trading amounts, lot sizes and leverage. Stocks, on the other hand, have a much more limited trading window and direction, where there is a greater chance for slippage, price manipulation and delays in execution. Also, as trades can be very expensive in terms of commissions, they can bleed your account.
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2 years 9 months ago #10

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