Forex Vs Stocks: Should You Trade Forex or Stocks

  • 5 years ago
Forex Vs Stocks: Should You Trade Forex or Stocks
Anyone new to trading is likely to wonder, "which is better: Forex or stocks?"Let's begin answering our question with a little economics 101.We find ourselves today in a low interest rate environment. Central banks around the world are still wrestling with low growth for the most part. If you want to learn more, get free system plus much more,visit: https://theforexsecret.com/best-free-forex-signal/

Loose monetary policy has been their main answer over the years. So what's the upshot for you?

Basically, leaving money in the bank does you little good. In many of the major economies, interest paid on savings is less than the rate of inflation. As a natural result, people are searching for better alternatives to invest their money into, such as the well-established financial markets of Forex and stocks. This article will consider the pros and cons of Forex trading and stock trading. The Forex market is extremely liquid. This is a result of the vast number of participants involved in trading at any given time. Large, popular stocks can also be very liquid. Vodafone and Microsoft are prime examples. Though once you move away from the blue chips, stocks can become significantly less liquid. The FX market is a 24-hour market, and it has no single central location; therefore, participants are spread across the globe; and there is always a part of the market that is in business hours. Trading a listed stock is limited, for the most part. Stock traders must adhere to the hours of the stock exchange. However, several major exchanges have introduced some form of extended trading hours. Stock traders may be able to participate during pre-market, and after-market trading periods.These were once the domain of institutional investors only. Advances in electronic trading have made it increasingly accessible by retail investors also. The catch is that extended trading sessions remain notably low volume and non-liquid. When comparing volumes across a 24-hour period, FX wins again. If you are looking to trade at any given time, the comparison of trading Forex vs stocks is a simple one - Forex is the clear winner.

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