The New York Stock Exchange has more than 2,800 stockslisted. The NASDAQ is home to an additional 3,300+ listings.
Which one do you want to trade? Do you have the time to keepup with so many businesses?
Numerous currencies can be traded when it comes to forex,however the majority of market participants only trade the seven major pairs.
Seven major pairings are significantly simpler to monitorthan thousands of equities.
Examine Mr. Forex. He is extremely arrogant and attractive.Mr. Stocks is hopeless!
One of the many benefits of the FX market over stock marketsis simply that. More examples follow:
24-Hour Market
The operating hours of an exchange determine the stockmarket.
For instance, the majority of stock exchanges in the UnitedStates opens at 9:30 am EST and close at 4:00 pm EST.
The currency market operates continuously around-the-clock.
Customer service is typically offered around-the-clock, andmost brokers are open from Sunday at 5:00 PM EST through Friday at 5:00 PM EST.
You can create your own trading schedule since you can tradethroughout U.S., Asian, and European market hours.
Minimal and NoCommissions
This is less of an issue now that many internet stockbrokers provide $0 commissions.
For trading currencies online or over the phone, themajority of forex brokers don't charge a commission or additional transactioncosts.
Forex trading costs are lower than those on any other marketwhen the spread is tight, stable, and completely visible.
The bid/ask spread serves as the primary means of brokerpayment.
More active and Liquidtrading
The average daily turnover on the FX market is $6.6trillion.
A tiny portion of this is seen in the stock market.
No Uptick in ShortSelling
The currency market does not have any restrictions on shortselling, in contrast to the equity market.
Regardless of whether a trader is long or short, or whichdirection the market is headed, there are trading possibilities in the currencymarket.
There is no directional bias in the market because currencytrading always entails purchasing one currency and selling another. As aresult, you can always trade in a market that is increasing or sinking.
Minimal MarketManipulation
How frequently have you heard that "Fund A" was purchasingor selling "X"? When enormous funds purchase and sell stocks, thestock market is extremely vulnerable.
With currency trading, it is extremely unlikely that any onefund or bank will control a specific currency due to the enormous size of the forexmarket.
Because of the FX market's high level of liquidity, seriouscurrency manipulation by a single firm is virtually difficult when the maincurrencies are actively traded.
Large net worth individuals, banks, hedge funds,governments, retail currency exchange companies, and hedge funds are just a fewof the participants in the spot currency markets, where liquidity is unheardof.
Less Likely to Havean Impact on the Market are Analysts and Brokerage Companies
Have you recently watched TV?
Have you heard of a particular Internet stock and theaccusation that an analyst at a reputable brokerage business kept his or herrecommendations, such "buy," even though the stock was fallingsharply?
It is in these connections' nature. No matter what thegovernment does to intervene and prevent this kind of conduct, it hasn'tstopped yet.
IPOs provide significant revenue for brokerage firms as wellas the companies going public.
Relationships are valuable to both parties, and analystswork for brokerage firms that require the companies as clients. That dilemmawon't ever go away.
The primary market for banks worldwide, foreign exchange,brings in billions of dollars each year and is essential to the functioning ofthe world's markets. Foreign exchange analysts primarily focus on the forexmarket analysis, with relatively little impact on exchange rates.
| ADVANTAGES | FOREX | STOCKS |
| 24-Hour Trading | YES | No |
| Minimal or no Commission | YES | Maybe |
| Liquidity | HUGE | Meh |
| Short-Selling without an Uptick | YES | No |
| No Market Manipulation | Depends | No |
The scoreboard between Mr. Forex and Mr. Stocks appears toreflect a convincing victory for Mr. Forex in the fight between forex andstocks! Will Mr. Futures aim for a 2-0 score?
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