You may have heardof FOREX. It's the largest financial market in the world, handling $1.5trillion every day. The Washi paper combined American stock exchanges only handle about$100 billion. Anyone mayhave heard of FOREX. It's considered as the largest financial market in theworld, handling about $1.5 trillion every day. The combined American stockexchanges handle only about $100 billion. Every day, people can make money bytrading forex (buying and selling foreign currencies). Let us see theadvantages of the Forex Market compared to the Stock Market.
1. Liquidity: As told above, there is always a chance to buyand to sell currencies. The forex market is handling about 1.5 Trillion dollarsevery day and this is a huge number. What is meant by liquidity is that thereare always buyers and sellers. When you want to buy, there will be a seller andwhen you want to sell there is always a buyer. Therefore the forex is seen asan active market and this is a first advantage.
2. No Insider trading: as you know, there are alwaysfluctuations in the currency prices. This fluctuation is caused by the economyof the corresponding countries. When a new economic indictor is released, itwill be published in the news within seconds. This gives all the forex tradersa fair chance to trade together using that news. On the other hand, in stockmarkets, some people may collect the news before others and start to buy orsell exploiting the news released about the corporations which is not fair.This gives the forex market a second advantage over the stock market
3. Accessibility: The Stock market is open few hours a daygiving the traders a less chance to trade. On the other hand forex is open allthe day and five day a week. This gives the forex traders an advantage to thestock traders because they have more time to trade.
4. Predictability: both the forex market and the stocks havesimilar tools to predict the trends. Although many concepts are similar, wefind that the trends in the forex market are more predictable over that in thestock market. This gives a huge advantage for the forex market becausepredictability is the key to make money with trading.
5. Smaller Investment: Forex doesnt require to money toopen an account. Only tens of dollars can open an account for you. Many brokersare lowering the minimum value to open an account to attract more customers.This is in contrast to stocks where higher values are needed to be able to openan account. Also the leverage value in forex is much larger where it can reach1:500 in contrast to 1:2 in stocks. From the above, we see that forex is a good ways to earnmoney with. However it requires a good study before trading. After well studiedand after you know the techniqual methods used to know the trends, it must bepracticed for several months.Finally, you can open account with low deposit value.