Forex and stock trading markets are the two major well-known trading markets. Stock trading markets are quite famous and anticipated by a lot of people. In contrast to the stock market, foreign exchange market is recently becoming more popular because it is more profitable and convenient way of trading. Most people prefer Forex market and stock markets have been largely replaced with it. A trader should prefer Forex market over stock market for a number of reasons:
Forex market is cheaper for trade and Forex brokers don’t charge commissions to their clients. They usually make their money by selling currency to you at a somewhat higher price. Foreign exchange markets are clearly cheaper than stock markets. For trading stocks, you need to spend a lot of capital to make good returns. Forex markets offer more leverage as compared to stock markets.
Forex markets provide 24 hour service as compared to the stock markets. Trading hours are quite important when it comes to trading. Forex exchange markets offer services round the clock. This time flexibility is beneficial for traders because you don’t need to look for a specific time for trading. This freedom of trade is not provided by stock markets. So Forex markets provide more trading opportunities.
The Forex market offers more convenience for trading than do stock markets. There is a long list of stocks in stock exchange market, whereas the Forex market is focused on major global currencies. Picking a stock from stock exchange market for trading can be quite overwhelming, but Forex market provides ease of trading.
The stock market is more susceptible to price manipulation than Forex market. Large companies can easily move certain stocks making it difficult for small traders to trade. Stock markets are also vulnerable to recommendations made by analysts. On the flip side, Forex markets are not affected by price manipulation or analyst recommendations. So the stock market lags behind Forex market.
Forex market is the largest trading market in the world. All banks, industries, financial institutes, investors and traders are active for a whole day in this market. Thus, Forex market is always prepared for trading on either side. Forex market leads the stock market with trillions of turnover.
Selection of Script:
Script selection is quite difficult in case of stock markets because there are thousands of companies. Hence, a trader gets confused while choosing script. Furthermore, when the market is flourishing, it is difficult to figure out which company will perform the best. However, script selection is not difficult in the Forex market.
Platform for trading:
There are a lot of online platforms for Forex traders. They are well developed with advanced services. You can use automated trading opportunity from this platform anywhere in the world as compared to the stock exchange.
In light of the above mentioned comparison, it is evident that Forex markets are far ahead of the stock market for trading. Forex markets are now preferred by traders than the stock trading markets. Foreign exchange markets are clearly the most profitable trading markets.