What is better Forex or stock exchange? Stock exchanges vs forex
It is very important to decide where you will trade before opening an account. The eternal dispute and the choice between what to choose, forex or the stock exchange, probably, will never stop. However, you should make your choice and can, starting from the pursued goals. One thing is to say, changing the market is not the best tactic. Choose a market that you think is safer and more profitable. You should feel comfortable and confident in the user, as well as understand the intricacies of the market.
That is what this article on elgreloo.com will be about. We will consider the advantages of both the Forex market and the Stock Exchange site.
What is Forex and Stock Market?
The forex market and stock market have similarities, but they are two different markets that have nothing to do with each other. The forex market trades world currencies, while the stock market trades securities of the largest companies in the world. From this it follows that the forex market allows you to earn on the difference in the rate of any currency, and the stock exchange provides an opportunity to earn on the difference between buying and selling stocks, futures, bonds and other securities.
If it still seems to you that there are no differences, then pay attention that on the stock exchange you only have to come from a rise in the price of securities, while at the forex you can make a profit from both the rise in price and its decline.
The stock market has its origins since the times of the merchants, at that time already bills of exchange were popular, as well as other papers that had value. After a while in Europe began to organize auctions, which were famous in Belgium and France. With this actually trade on the stock exchange began. Stock exchange goods are directly securities. In the world at the moment there are 200 stock exchanges, the largest ones are: in the USA there are 13 centers, in Japan 9, 22 are in England, 8 centers in France, in Germany 7.
The three largest stock exchanges are located in London, New York and another in Tokyo. So that you understand their scale, the total capital is more than 28 trillion dollars.
Forex (FOReign EXchange), can be found in the time of Babylon, and then in medieval Italy money changers. It was they who made their fortune on how the market value of any coin changed. Today, the daily turnover reaches 3 trillion dollars. The leaders of the modern market are such companies as: Nord FX, Alpari, Pantheon Finance, FBS Markets Inc. and others. The main and only source of income is the transaction fee. The broker provides access to the market, and it is good for them to attract new people to the sites. That is why they care so much about your success and are always eager to help you with full readiness, all due to the fact that your success is equal to their profit.
No matter how one market differs from the second, you will always be confronted with one and the same principle, namely, sell as expensive as possible, and buy at a cheaper price. However, it should be borne in mind that forex trading is carried out exclusively in currency pairs, each trader can afford to choose any of the currencies that are included in the pair, this can always be earned, even if the pairs are reduced.
The difference between stock exchange and forex
Finding a clear answer to the question “Is it better – the stock market or forex?” Is quite difficult.
Each of us has different goals, plans and strategies. Some are willing to take risks for good and quick profits, while others, on the contrary, will agree to wait for profits, so long as it is a safe and risk-free way of making money. If it seems to you that it is difficult to determine what you need, then you are mistaken; it is much easier to find the answer to this question. Imagine the real situation with risks and losses, and think about how much you are ready to lose. Analyzing such situations you will come to the conclusion what type of person you are, risky or not.
Next, elgreloo.com compares the main requirements of forex and the stock exchange in the table.
Minimum deposit of $ 1
The minimum deposit of 30 thousand rubles.
You pay taxes yourself
Your taxes are paid by the broker
Opening an account in a couple of minutes
Opening an account within two weeks
There is no volume of trade operations
Trading volume at any time
From the spread you can not escape
Spread savings due to limit orders
No application glass
There is a glass of applications
Execution in a couple of seconds
Execution within a second
Leverage from 1: 100 to 1: 1000
Shoulder from 1:20
Currency trading is available.
A thousand different tools