Tuesday, June 16, 2009

Forex Market Vs Stock Market

For those who is familiar with stock market, you may want to take a look in Forex Market as another alternative investment portfolio.
Firstly, lets look at some key differences between the Forex market, and the Stock market. The Forex market can be traded 24 hours per day, but the Stock market is only open 8 hours per day. This fact alone creates a very large advantage in favor of the Forex market. It is considerably more expensive to trade stocks, than it is to trade currency, as the cost of Forex trade transactions are minimal, when compared to stock trade commission fees. However, it should be noted that due to technological advances over the last four or five years, the cost of stock trades have become considerably more reasonable.
Another Stock market flaw, is the fact that investors can fall victim to unscrupulous companies who may manipulate their stocks to a certain extent. Manipulation in the currency market is far more difficult to accomplish, if not impossible to do so. The fact that there are only six major currencies to be traded in the Forex market, is a clear advantage over the multitude of stocks available. Selecting what to trade and when, is much easier to accomplish with the Forex market. The leverage and liquidity found in the currency market is far greater than found in the Stock market, and the currency market as a whole is much larger than the Stock market.
For those who are wanted to know how to create passive income in FOREX Market, you can reach me at mikesmt@gmail.com
All the best in your investment!
 
Disclaimer
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