May 28 2021 0
The battle between forex and stock markets has long been dividing traders. All of them claim this market is better than the other. Well, at BRKV forex, we, the forex traders, want to make some small comparisons to show the advantages of forex over stocks.
The forex market is almost open 24/7. Most brokers open at 5:15pm on Sunday EST and close on Friday, 4pm, and 24/7 customer service. And forex trading is done anywhere in the world, across all time zones. This will help you to set up a schedule that works best for you.
Usually forex brokers do not charge a service fee or an additional fee for each order placed. The broker will split a part of the commission on the difference between the selling and buying prices to divide them. Therefore, the transaction costs in forex are much lower than in other markets.
Place orders immediately
Your order will be executed immediately in most trades. And you can also stay up to date with rates and your account. All of your trades are just one click away. And there will be no difference between the rate you update and the rate you trade as in stock.
Buy and sell simultaneously
Unlike the asset market, which is restricted and cannot be sold short (sell first, buy later), in the forex market you have the opportunity to trade in both up and down markets. Trading opportunities always appear at all times and just need to be aware of market trends. So you can always decide to invest and withdraw at any time at any stage of the market.
Direct trading at financial centers and brokers brings many benefits to traders, but it has the disadvantage of having to go through an intermediary. The more objects involved in the transaction, the higher the cost will be, the longer the order time and the more complicated the procedure. The cost is not only money but also time spent. In the currency market, intermediaries have been eliminated, allowing customers to trade directly on trading platforms with the broker and place orders immediately with changes in the market. Forex trading makes transactions faster and saves money on intermediaries than securities and other businesses.
Buying/selling has no impact on the market
How many times in the stock market have you been excited about news like “Fund A” selling shares of “X” and buying shares of “Y”? Rumors can be profitable for a few, but damaging for the majority. Moreover, the stock depends on the financial position of the companies, and therefore it also depends heavily on a group of "Boards of Directors". The stock market is very sensitive to buy / sell orders, and is not suitable for those who want to trade in the short term. In the forex market due to the impact of "cash flow", the ability of banks or money funds to influence is very small. Banks, hedge funds, governments, speculators and trading groups are only a small part of the foreign broker market and the “flow of money” is uncontrollable.
Investment analysts and brokers have little influence over the market
Do you watch TV often? Are you interested in analysts and stockbrokers who often forecast market conditions and make "buy" or "sell" comments on a security? Although the government has taken many measures to limit the external impact on securities, it is a part of the market and still has a great influence on the investment psychology of traders. But the forex market, as a primary market, born from the world bank and increasingly expanding with capital flows up to several trillion dollars a day, has become a global market. Experts and analysts cannot "drive" the flow, and their analysis is for reference only in this market.
8,000 stocks and 7 major currency pairs
There are approximately 4,500 securities listed on the New York Stock Exchange. And more than 3,500 other varieties at NASDAQ. How do you choose? Spending time analyzing each company one by one? In the forex market, you have 4 major currency pairs trading 24h/day and 5.5 days/week. You can completely focus on 1 currency pair to research and trade. You can see the wide difference between forex and stock now.