We have met a lot of traders who think that Forex is better than stock market trading. There are also traders who think that Forex trading is riskier than the stock market. So, which one is true? You do not have to go here and there to find your answer as you can find it right here. Forex market and stock market both are financial and it is very common for the traders to mix them up, but you should know if you are going to be safe in the stock market or in Forex when you are trading.
Forex market is a decentralized market and every day more than 4.5 trillion dollars is traded. This is the largest financial market in the world and it will grow big over the period of time. Unlike the stock market when any currency pair down another currency pair is always up. If you can interpret the price movement then you can easily make money regardless of the economic conditions of a certain country. And most importantly no one can manipulate the price movement of any financial instrument in this market.
Forex is better than stock market
Give a big smile as we say that Forex is better than stock market trading. When you are trading in stock market, you will not be allowed to open your account if your account is small or you do not have money. There are also many rules that you need to follow in the stock market to trade. You will be trading in your national currency and all your trading will be done in your country.
On the other hand, Forex trading gives traders much freedom than stock market exchange. They can trade the market and if they want, they can open an account with small money. Most traders in Forex open their account with the very small amount of money. The small account is not going to stop you from entering the exchange traded funds community as it would you in the stock market. Another benefit is you get to trade all day in a week. There is no day when the Forex market is closed. If you are trading in stock market, you will have to stop trading in your national holiday. Forex market is worldwide and there is no holiday. You may have to close trading on some holidays but that is not going to stop you from trading. The freedom in Forex and the flexibility is much higher than the stock market.
But Forex is riskier
We have said many good things about Forex market. But you should know that the Forex market is very risky than the stock market. This market is volatile and traders who invest in Forex market, they know they will lose money in Forex. When you start trading in Forex, you will lose money and all traders start like that. Always remember that these benefits of Forex come with big risks when you are a Forex trader.
Trading the volatile market is hard
Unlike the stock market, the currency market is extremely volatile in nature. But volatility is the key ingredient to make a profit in trading. The professional traders use market volatility in their favor to execute high-quality trades with an extreme level of precaution. So it’s very clear that if you want to change your life based on your trading career then you need to learn about this market volatility. Being new to this market it will really hard for you to interpret the price movement but if you develop a strong trading skill, this market is the perfect place for you to make.
It’s not like that you can’t become a millionaire by trading the stocks. But if we compare the profit taking opportunity in the Forex market then we have many added advantages over the stock. But still, it’s up to you whether you chose stock or Forex trading as your full-time profession.