Aug 27 2021 0
Did you know we can trade stocks as CFDs on the forex market. At Exness, stocks are also one of the most chosen trading assets by clients. For how to buy stocks on Exness, see the following article by BRKV Forex.
How to buy stocks on Exness
At Exness, clients can choose to trade CFDs with up to 71 different stocks. Among them, there are stock codes of extremely hot corporations and companies on the stock market such as Coca Cola, Apple, Tesla, Pepsi, Microsoft... See full list here.
To buy and sell stocks on Exness, you just need to open an order just like you are trading forex currency pairs. However, in the selection of trading products, please enter the stock code there. For example, Apple's code is AAPL or Tesla's is TSLA. To know which company's stock code, please google it.
The cost of trading stocks is the same as trading currency pairs. You also pay the same spreads, commissions or swaps as if you were trading a forex currency pair. The way to buy stocks on Exness is really simple.
Why you should trade stocks with Exness
Liquidity makes it easy to buy or sell a financial product. Besides measuring, high liquidity also helps lower transaction costs.
In particular, forex is a market with extremely good liquidity. This is the result of an extremely large number of people entering the market at any given time. Large, popular stocks also have good liquidity. However, for small companies, stocks are often illiquid and unstable.
Here is an example to help you better understand the liquidity between forex and stocks with two very famous financial products, EUR/USD with Microsoft.
First, with Microsoft. When you trade Microsoft stocks, you will have to pay a spread. With the list price of Microsoft stocks under normal market conditions, the spread can range from 2 to 5 cents. This is a spread of 0.04% to 0.09% of the stock value. The commission rate you need to pay for 1 share is 10 cents. Thus, the cost to trade 1 microsoft stock ranges from 12-15 cents when trading.
As for EUR/USD. This is arguably the most traded currency pair in the world. When trading this currency pair and exclude commissions. You will usually pay 1 pip of spread to trade EUR/USD. If you are interested in trading the forex market, this fee is very low to get you started.
With EUR/USD at 1.1900 with a value of 1 pip = 0.0001. So what ratio do you think you will pay when trading EUR/USD? The result is less than 0.01%. Thereby you can see, in terms of transaction costs, the forex market is more dominant than the stock market. In addition, when taking into account the commissions when trading stocks, in terms of costs, the forex market has much lower fees.
Thanks to the ability to buy stocks on Exness, you can now participate in this huge stock market at a much lower cost. You just need to apply the trading strategies that you are using with forex pairs.