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Forex Vs Stocks

The document compares Forex and stocks, highlighting several key advantages of Forex trading: 1. Forex has 24-hour trading as currencies are traded globally, allowing investors to trade on their own schedule. 2. Forex has fewer fees, with only the spread between bid and ask prices rather than commissions and other fees charged in stock trading. 3. Forex has fewer restrictions on short selling compared to stocks. 4. Forex offers easier research with only 6 major currency pairs to follow rather than the over 45,000 stock listings worldwide.

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89 views2 pages

Forex Vs Stocks

The document compares Forex and stocks, highlighting several key advantages of Forex trading: 1. Forex has 24-hour trading as currencies are traded globally, allowing investors to trade on their own schedule. 2. Forex has fewer fees, with only the spread between bid and ask prices rather than commissions and other fees charged in stock trading. 3. Forex has fewer restrictions on short selling compared to stocks. 4. Forex offers easier research with only 6 major currency pairs to follow rather than the over 45,000 stock listings worldwide.

Uploaded by

boefbrak
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Forex vs Stocks

Forex inherently appeals to traders world-wide with its advantages.

24-Hour Trading

One of the foremost advantages of trading Forex is 24-hour trading.

Forex is able to trade 24 hours because it isn't traded on an exchange; rather by banks
around the globe. Even though it may be 9:00 pm on a Wednesday, there is a market open
somewhere in the world in which currency is available for trading. Forex is a true 24-hour
market, trading from Sunday afternoon ET to Friday afternoon ET. Such 24-hour trading allows investors to trade
on their own schedule - and not on the schedule of an exchange.

Fewer Fees

With Interbank FX, the only transaction cost to trade Forex is the spread - the difference between the bid and ask
prices. On top of that, our spreads are as low as 1 pip. (Learn more about what a spread and pip is)

Enjoy low spreads with Interbank FX. But don't take our word for it: here on our website we publish actual
previous spreads to substantiate our low spreads claim. Say goodbye to commissions, account maintenance
fees and service fees, inactivity fees, account closing fees, and say hello to the simple power of trading Forex
with Interbank FX.

Fewer Short Selling Restrictions

With the same margin requirements as buying long, a trader can sell short in the Forex market without added
costs and hassle. This allows traders to act on a bullish market as well as a bearish one.

6 Majors vs. 45,800 Stocks

Finding a good opportunity in stocks can be like finding a needle in a haystack due to the sheer number of stocks
available to a trader. The World Federation of Exchanges cites over 45,800 stock listings on 52 different
exchanges in the world. Forex traders can cut down on the research with only 6 major currency pairs to evaluate
and follow.

And for the traders who want to branch out from


the 6 major currency pairs, Interbank FX offers 26
different currency pairs for trading.

Much of the data that can influence the Forex


market is publicly available data published by
government bodies (e.g., GDP, Non-farm
Employment report, Inflation, etc), where the
numbers are not likely to be 'cooked'. Moreover,
this data is released to everybody at the same
time, which means you don't have to be an insider to be in the know.

Instant Execution

With Interbank FX, all forex trades are 100% executed anonymously without human intervention. Removing the
human element helps make placing trades fast and more accurate, which is helpful in a fast moving market.
As seen on Interbank FX's performance page - a page dedicated to showing actual trade statistics – our traders
enjoy fast execution rates. Visit our performance page to view our most recent execution rates - and our other
performance statistics.

Increased Liquidity

Forex's unmatched liquidity has many advantages for today's traders.

1. The entire foreign exchange market trades some 3.2 trillion each day* (of which the retail sector is
a small portion). Because market price is based on supply and demand, large purchases of
millions, or tens of millions, are miniscule compared to overall daily volume, and thus won't
artificially influence market price.
2. With instant 1 click liquidity available up to 5,000,000 per trade, traders needn't worry as much
about filling a large order.
3. The sheer amount of volume helps provide price stability and continuity.

*As of April 2007

Flexible Leverage and Contract Sizes

Leverage is a two-edged sword: on the one edge providing more market exposure, and on the other an increase
in assumed risk*.

Interbank FX offers flexible leverage options just about anywhere from 1:1 to 100:1. Risk conscience traders
have the flexibility to zero in on the amount of leverage they are most comfortable with - all regardless of account
size and trade volume.

Traders with Interbank FX also have the ability to trade contracts in increments of 0.01. Traders can use these
fractional lot sizes to help reduce exposure and try new trading strategies.

Access to Your Profits

Profits from Forex trades are treated differently than in other markets. For example:

Use Unrealized Profits - In Forex, all of your unrealized profits can be used to manage and place new positions.

No 3-day settlement - Once you close a profitable Forex trade, the profits are immediately available for
withdrawal. And the Interbank FX Global Debit Card is one of the fastest ways to get your withdrawal.

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