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Basic different between forex and stock market


ali200

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i want to share with you the basic difference between forex and stock market which i think in my opinion advantages for forex

both the forex and the stock markets deal with money, the biggest difference between the two is the sheer volume of money transacted on a daily basis as well the span of operations. The forex market deals with nearly 2 trillions of dollars which in comparison to any stock market is much larger. The players in the forex market are also different, where the money transactions are done between governments, international banks and financial institutions of different countries.

The other difference between a stock and a forex market is that stock markets operate in shares and businesses which belong to a specific country; forex markets on the other hand operate globally and can include any and every country of the world. Its span of operations is far wider. The market encompasses nearly every country of the world and deal with trading their individual currencies which has nothing to do with any specific business or corporation.

While stock markets operate only on business working days and may remain closed on bank holidays and weekends, the forex market has to consider the several time zones across which it operates. Hence the forex market is open 24 hours 7 days a week

The stock market of any country operates with the prevailing currency of that country.The forex market, on the other hand, works with many countries and trades in many currencies





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  • 2 months later...
  • 8 months later...

It is always a very complicated comparison since many people who have never done stock trading don’t know what it is and how things work there. I have done both and I can honestly tell you there is a big difference. Stock Exchange trading is mainly for experts and the minimum we need to start is at least 400-500 USD investment and worst part is that even after that making good income is hard.

In Forex it is completely different, as we can start with as low as 5 USD if we select reputed broker like OctaFX and we can still make great income if we have skills and get things like leverage, bonuses and many more offers which are not there in Stock Exchange.

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Never traded on stocks, because I far as I know it is not easy to find proper brokerage firm with low comissions and reasonable trading conditions. It is better to trade them through CFD, and my broker Hotforex offers it. However in my view they lack volatilty and I prefer currency pairs for trading, especially cross pairs and exotic ones where fundamental analysis is highly possible..

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I do not know for sure what the difference between stock and forex. I know that forex requires only a small capital for trading such as $ 1 while in stock we require substantial capital. for that is why many are choosing forex instead of stocks

Now to open an account in forex is very easy, a lot of brokers who provide the minimum deposit. but I now prefer to use capital $ 50 with a leverage of 1: 500 in the Armada Markets

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the minimum now a days are really small compared to a couple of years back most brokers offer smaller deposits it all goes down to the service provided and the comfort clients get. some go with armada some go with oanda others with alpari me personally trade hotforex.

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  • 3 months later...

The basis thing that I was not able to do in Stock but was available to do in trading was that I was allowed to begin with low investment of just few dollars but with stock even hundreds of them was not enough for Stock, hence it’s so good to be working in Forex while I also got amazing broker like OctaFX where I get 50% extra for deposit and that is so useful to trade with a much more aggressive approach.

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  • 7 months later...

To be honest, I never used stock market. So, I can’t compare fairly. By the way, definitely I believe Forex trading is the one of the most excellent profession. The facilities of Forex are much unique and useful. As, I started my live trading journey with 100$ no deposit bonus offer of TradingBanks broker. And, I made healthy profit from this bonus offer. So, it’s really great experience for me!

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