Stocks or Foreign Exchange ? Where Is the Easy Money?

Some investors may have trouble getting into forex trading because they still believe that trading stocks will make them more money.. That was before the forex mechanical trading systems and probably because they don't understand forex. With stocks you are trading pieces of the company that can increase or decrease in value depending on how much the company is making or the stock market perception of the company... growth or static... earnings or not.
Each stock can be sold for a profit in the short term or the long term. There are 'day traders' and the usual group of wall streeters trading for a few profits each week.
However, most people who buy stocks do it for the long term.

With forex the whole game is short term. Traders are not concerned about holding on to anything. Most forex trades are usually closed out within a 24 hour period and the profit can be much higher than with stocks.

Broker fees and forex

With stocks you have to pay a commission to your broker for each trade. Although nowadays commissions are down dramatically and within reason. However, if you do a lot of trading, these fees add up pretty quickly. On the other hand, forex trading offers a complete lack of commissions

Your broker does not take a commission for you trades but there is a difference between the 'buy' and the 'sell' price called the 'spread'.. This is simply the difference between the asking price of the currency you're buying and the selling price. This is the broker's 'commission' in Forex Trading.

Differences in time

When you trade stocks you are limited to the time that the market is open. The asian market continues the day, but there you have to switch exchanges and with stocks you are not being offered the same mix in Hong Kong as you are in New York or London. If you're trading the forex market the day last 24 hours, the trading begins way across the other side of the world in Australia and Japan early in the week and doesn't stop until the end of the working week in New York City.
Therefore, a trader who may not have that much time can still get in on this market even if they have a full time job and, in fact, the better time for trading forex is probably during the Asian hours, and that is later in the day in the U.S.

Limited size

The biggest difference in forex and the stock market is the sheer size of the market itself. If all the American stock exchanges were put together, they would only equal roughly about One Hundred Billion dollars of daily activity. With forex, the market handles anywhere from between One and a Half Trillion to Three Trillion dollars a day.
The Forex market is everywhere and not restricted to any one place in the world. This allows for the market to be more liquid and there is always someone who is willing to buy and sell whatever currency you are trading.

For the beginner, there is a distinct advantage to Forex in that one can skip the learning curve at the and hop right in with a Forex Mechanical Trading System. These software programs give the neophyte unbelievable support to begin with, and are a great way to start the learning process 9in Forex Trading.


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