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Forex vs Stock Market

 
We Believe, you will find that that trading in the Forex market has numerous advantages over trading stocks shares or trading futures.
 
Commission-free trading - It does not charge any commission or transaction fees to trade. Because of the over-the-counter (OTC) nature of the Forex market, as well as the fact that it is an electronic network connecting traders directly with market makers with no middle man, transaction costs are greatly reduced. This reduction in cost is passed on to the investor through some of the smallest spreads available anywhere.
 
24-hour trading - The Forex market is a true 24-hour market. This is a major advantage over any other market because at any time, day or night, you will be able to trade and there will always be buyers and sellers. At 5pm on Sunday, New York time, the financial centers in Sydney and Singapore open for business and trading begins. The market in Tokyo opens at 7pm, followed by London at 2am and finally New York at 8am. These all overlap to provide for a seamless 24-hour global market throughout the week, allowing traders to react to news by trading immediately at any time. Traders do not have to worry about limited after-hours trading activity because in the Forex market, all hours, except on the weekend, are market hours.
 
Unbeatable liquidity - As the largest financial market in the world, the Forex market has the advantage of superior liquidity. With daily volume of $1.5 trillion, it is fifty times larger than the New York Stock Exchange. Simply put, there are always going to be buyers and sellers around the clock, and traders will almost always be able to open or close positions at fair market prices.
 
400:1 leverage - We offers investors leverage of 400:1, meaning that you can trade $100,000 lots by putting up just $250. In equity trading, your maximum margin is 2:1, or 50%. This superior buying power is one of the reasons that Forex trading has gained so much popularity and interest over the years.“Without proper risk management, this high degree of leverage can lead to large losses as well as gains."
 
Trading potential in any kind of market - The nature of a Forex transaction is the simultaneous buying of one currency and selling of another. That means that there exists the potential to trade when the market is going up, and even when it is going down. In equity trading, there exists a "zero plus tick" rule, limiting when an investor can sell a stock short. No such rules apply to Forex trading.
 
 
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.

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