The Forex Market is the largest financial market in the world, trading trillions of dollars daily. The Forex Market differs in many ways from the Stock Market. These key differences are some of the reasons I prefer to trade in the Forex Market versus the stock market.
Low Minimum Investment
You can open a trading account and deposit as little as $10 depending on the broker. I’ve turned $15 to $100 a few times. Versus in the stock market, brokers may require minimum deposits of a few hundred or thousands of dollars to be able to trade.
More Liquidity In The Forex Market
The Forex Market trades over 2 Trillion dollars daily. There are 7 major currencies traded in the Forex Market. In comparison, there is about 300 billion trading in the stock market while there are 40 thousand different stocks to analyze.
You Can Utilize Leverage To Trade
Forex Market offers great leverage power. Brokers usually offer from 100:1 to 400:1 leverage. This means a trader using 100:1 leverage you control $100,000 with only $1,000 margin. Stock market investors pay full price for stock when purchased unless they have a margin account and the leverage with margin is usually only 2:1.
There Are More Trading Hours In Forex
The stock market is only traded Monday thru Friday with limited hours. The Forex market is traded 24 hours per day from about 7pm EST on Sunday until about 3pm EST on Friday. I think this one of the best parts of trading forex. The ability to trade at any time.
What differences in Forex Vs Stocks do you personally prefer?