Why Trading Forex is Better Than Trading Stocks

, , Leave a comment

work

Forex Trading Wins

The forex and stock market are two of the largest trading markets, and traders often wonder which one is the better option. For all the attention surrounding the stock market, trading forex is much better.

Reasons why forex is better than stock trading

Fewer tracking currencies

The first point you will have to look at is the ease of trading. There are roughly 2,800 stocks listed on NYSE while NASDAQ has more than 3,100 stocks listed on its platform. The primary problem for traders is keeping track of the numerous stocks available.

In forex trading, there are dozens of currencies that are being traded but the attention of traders is focused solely on the big four (USD, JPY, EUR, and GBP). Tracking four currencies is much easier than keeping an eye on the thousands of stock.

24-Hour Market

The forex market has a 24-hour operation period. Forex brokers are usually open from Sunday at 4:00 pm EST until Friday at 4:00 pm EST. Since most traders trade currencies trade during the U.S., Asian, and European market hours, trading goes on for virtually 24 hours every day.

Instant Execution of Market Orders

In forex, trades are executed instantly under normal market conditions. The price a trader locks in when placing an order is the price they will get for a currency. This is unlike the situation during stock trading. With forex trading, you will have the chance to execute directly off real-time streaming prices

Short-Selling without an Uptick

The stock market has restrictions on short selling, a situation that doesn’t exist in the currency market. There are trading opportunities in the forex market whether a trader is long or short on his/her trade.

The currency market is made up of buying one currency and selling another, which means a structural bias to the market doesn’t exist. Equal access to trade is given to all traders, in both rising and falling market situations.

Buy/Sell programs do not control the market. The stock market can be affected by large fund buying and selling. Due to the large size of the forex market, one hedge fund or bank controlling a particular currency seems almost impossible. In the currency market, there are several market participants and they include banks, hedge funds, governments, retail currency conversion houses, and rich individuals.

 Forex Signals

Do you want to increase the number of trades you take in the Forex market. Try our Forex signals, available worldwide and sent to traders via email, sms and automated with our MT4 Trade Copier.

 

Leave a Reply