Why forex is better than stocks

Beginner Questions
1

There is no definitive answer to whether forex (foreign exchange) is better than stocks because it ultimately depends on the individual’s investment goals, risk tolerance, and investment strategy. However, here are some potential advantages of forex over stocks:

  1. High Liquidity: The forex market is the largest financial market in the world, with a daily turnover of more than $6 trillion, making it more liquid than the stock market. This high liquidity means that investors can easily buy and sell currencies, which can lead to lower trading costs and tighter bid-ask spreads.
  2. Trading Hours: Unlike the stock market, which is open for a specific number of hours, the forex market is open 24 hours a day, five days a week. This means that investors can trade currencies at any time, making it easier to manage investments.
  3. Volatility: The forex market is known for its volatility, which means that currencies can fluctuate rapidly, providing more opportunities for traders to make profits. In contrast, the stock market tends to be less volatile, which can limit the potential for gains.
  4. International Exposure: The forex market allows investors to gain exposure to currencies from around the world, providing diversification benefits beyond domestic stock investments.
  5. Leverage: Forex trading allows investors to trade on margin, which means they can control a large position with a relatively small investment. This can amplify potential profits but also increase the risk of losses.

It’s important to note that forex trading can be complex and risky, and it requires a lot of research and skill to be successful. Investors should carefully consider their investment goals and risk tolerance before deciding whether forex or stocks are the better investment option for them.

3

Forex is better than stock , for that reason over the world this trading place growing very rapidly.

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4

Forex is a little bit risky compared to stock, but there is no trading platform which is profitable as Forex.

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5

Forex is good compare to stock , but with very short time there is no chance to bring good amount of profit from this volatile trading place , its a very long time journey

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6

I was made to understand that stocks is comparable to addition to your capital while forex is multiplication. I agree 100%.

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7

i think exactly the opposite

forex is the highest-risk of all, and the worst trading conditions of all, and the worst regulated of all, and the highest dealing-costs of all

IMO this is why the proportion of people trading futures, options, bonds and commodities who eventually become profitable is so much higher than the proportion of forex traders who ever manage it

the three biggest groups of people to whom forex appeals are gamblers, the undercapitalized and people with a get-rich-quick mentality - that’s why being a counterparty broker is such a good business, because almost all your customers gradually lose, and you hold the other side of their trades - as anyone working in the industry will tell you

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8

Are you sure? I think it’s not that profitable and you have to deal with a lot of stress and risks as well!

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9

I trade both Stocks and Forex and find that Forex is definitely more volatile overall, and cheaper to trade.

I have 2 accounts for stocks; one for investing and one for trading. I tend to hold my Stock trades longer than my Forex trades due to the high volatility in the Forex market. Plus, it costs me $5 to open and another $5 to close each trade I make for position sizes below 500 ($10 above 500), so, I generally want to get the most out of each trade.

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10

from two people will decently will choose Forex with no doubt , but Forex contains huge risk compare to stock . and this trading place is so unpredictable also.

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11

sometimes i trade both at the same time , bring good profit from Forex and less losses from stock. this experience for very short time.

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12

Why not consider trading multiple markets simultaneously? Although it may seem overwhelming and cause a loss of focus, a successful trader must be prepared to seize any opportunities that arise to trade and potentially profit.

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13

Is it? =)))

15

Can we say trading stocks is better for the long term?

16

The Forex and stock markets have their own advantages and disadvantages, and what works for one person may not work for another. Therefore, it’s hard to say if Forex is better than stocks or vice versa. Here are some reasons why someone might prefer Forex over stocks:

1. Liquidity: It is easy to enter and exit positions quickly on the forex market, even with large sums of money, due to the fact that the Forex is the world’s largest and most liquid financial market. In comparison, some stocks may have lower trading volumes and may be harder to sell or buy in large quantities.

2. Accessibility: The forex market is open 24 hours a day, 5 days a week, which allows traders to enter and exit positions at any time. In contrast, the stock market may be closed during weekends or holidays, which limits trading opportunities.

3. No insider trading: The stock market can be influenced by insiders, like company executives, who may have access to non-public information. In contrast, the forex market is so large that it is less susceptible to insider trading.

4. Lower Transaction Costs: Brokers who deal in forex, charge lower transaction costs than stockbrokers, as they do not charge clearing fees, exchange fees, or government fees.

5. Diversification: Forex trading offers a wide range of currency pairs to trade, allowing traders to diversify their portfolios and reduce their risk exposure.

Ultimately, whether forex is better than stocks depends on a trader’s goals, risk tolerance, and personal preferences. There is a significant amount of risk involved in forex trading, and it is highly volatile. To be successful at forex trading, traders must conduct thorough research, develop a solid trading plan, and manage risk appropriately. It is essential to do your own research and consult with a financial professional before making any investment decisions,

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17

Yes, I agree with you in this regard. Stocks have some limitations that Forex doesn’t have. That’s why traders feel relaxed trading forex.

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