Many traders are stuck between forex and stocks. Of course, both have great advantages and benefits. The amounts of profit you can earn also vary, depending on which market you are trading.
However, when it comes to the choices, you’re probably going to have a much tougher time in stocks. There are just thousands and thousands of stocks to choose from. It’s never easy to be on top of all those stocks, right?
In the forex market, you only got dozens of currencies to trade. And among those, you only really have to choose from 8 major currency pairs.
That’s just one of the advantages of forex over stocks. The following are some other benefits Forex News you might get.
It’s a 24-hour market
Time is a very important component of a trading career. And you cannot waste time. No. Not today sir.
The forex market is open for 24 hours. A huge chunk of brokers and exchanges are open from Sunday afternoon eastern standard time until Friday afternoon. The customer service, meanwhile, is usually available all the time.
Because you can freely trade during the US, Asian, and European market hours, you can easily come up with a customized trading schedule.
You’ll pay low commissions
In the forex market, brokerages typically do not charge any commissions or any additional transaction fees. You can trade online or over the phone without having to worry about any fees or commissions that could rack up and chip away from your money.
In fact, you can also benefit from tight, consistent, and fully transparent spread. Overall, forex trading has the lowest fees compared with those in other markets.
If you’re wondering, these brokers get paid for their services through the bid and ask spread.
Ultra-fast market order executions
Under normal market conditions, your trades can be quickly executed. And when we say normal market conditions, we mean that the price shown when you execute your market order is the exact price you get.
However, it bears emphasizing that brokers only guarantee stop, limit, and entry orders if there are really normal market conditions. You cannot expect to trade under normal conditions if the Avengers are currently poking aliens with their weapons in New York.
There’s no restriction in short-selling
In the equities market, you have to follow certain rules when it comes to short selling. And by the way, short selling is when you try to make some money out of a declining stock. This is quite frowned upon by some, since it practically means you wish the company issuing the stock to go down.
In the forex market, there’s really no restriction on short selling. You can always find some trading opportunities on the forex market whichever way the market is moving.
When you’re trading in forex, you’re always buying one currency and selling another. You’re always betting that one currency will get stronger while the other will get weaker. That means you’ll always have equal access in rising and falling market.