In the stock market, we buy or sell shares, with or without leverage. Our trades are directly executed on exchanges like Nasdaq, NYSE, NSE, BSE, LSE, etc. Essentially, we trade ownership of companies for currency. Therefore, the stock market has intrinsic value based on the underlying companies’ assets and potential.
I initially thought the forex market, particularly A-book models like STP, DMA, and ECN, functioned similarly. We seem to be buying and selling currencies directly on exchanges in New York, London, Japan, and Australia. This also appeared to imply intrinsic value due to the exchange of real currencies. However, according to School of Pipsology, all brokers are market makers, and our trades don’t actually reach these exchanges. Instead, we’re essentially placing bets against the broker in a gambling-like system. This absence of ownership and real currency exchange suggests that such forex models lack intrinsic value, similar to a casino.
My question, therefore, is whether there exists any forex market or broker where we can truly hold underlying assets and build intrinsic value, similar to owning shares in the stock market.