Why Forex Is A Better Investment Concept Than Stocks or Commodities

Forex, the Foreign Exchange Market, is a worldwide market place for buying and selling foreign currencies. The key currencies that are traded consist of the U.S. Dollar (USD), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (JPY), and the Swiss Franc (CHF). The purpose of this post is not to go into the facts of how Forex works, but to compare the rewards of trading in the Forex market versus trading the Equity (American stocks) or Futures markets (Commodities).

The Forex market place is the largest market place in the world with over 2 trillion dollars traded each day. This compares to the 200 billion dollars traded everyday in the Equity and trading gurus Futures market place each. Simply because of this, the Forex marketplace rewards ontargetfx.com from fairer rates, price stability, and much better trade execution.

Forex has the benefit of being open 24 hours a day. The Forex industry opens on forex markets Sunday afternoon and remains open till it closes on Friday afternoon. The Equity and Futures markets are only open Monday by way of Friday 8:30 a.m. to five:00 p.m. Eastern Standard Time. This offers Forex traders the chance to trade around their individual schedule. Also, liquidity in the Equity and Futures markets are reduced right after standard trading hours.

When trading Forex, you will not incur the commissions or transaction charges that exist in the Equity and Futures markets. You spend a spread on the currency pair you are trading and fees are extremely low, particularly when compared to the other markets.

Investment leverage in the Forex industry can be as high as a 200:1 margin. In the Equity and Futures markets your average margin is four:1. This indicates that you can control $ten,000 worth of currency with only a 50-dollar margin.

In the Equity and Futures markets, investors are expected to fund a number of thousand dollars to open a trading account. In the Forex market, you can open a mini account for only 300 dollars and begin trading.

In the Equity marketplace, brief selling is very risky and comes with limitations. In the Forex market, you are able to buy lengthy or sell brief any currency pair with no limitations or distinction in risk.

As an investor in the Forex market, you are able to concentrate on only a handful of main currencies. There are seven main currencies yielding four major currency pairs that most Forex investors concentrate on. Whereas in the Equity marketplace, investors have over 40,000 stocks to pick from when contemplating exactly where to invest their cash.

There are several variables to contemplate when deciding on which market place you want to devote your time and funds. The Forex market provides many advantages more than the other significant investment markets that will let you, the investor, to make larger earnings, take much less threat, and invest more time with your individual life and less time investing.