There are approximately 4,500 stocks listed on the New York Stock Exchange. And more than 3,500 stocks listed on NASDAQ. You select any stock trading? Devote time analyzing each company one?
In spot currency trading, there are dozens of currencies traded but the vast majority of market participants trading 5 major currency pairs (EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD) to be easily monitored than with the observation that all stocks thousands.
Here are some advantages of the forex market than the stock market:
24-hour trading market
Almost forex market operates 24 hours / day. Most exchanges are open at 04:00 (VN time) on Monday morning and ends at 04:00 (hour VN) 7 am with the customer care services 24 hours / 7 days. With the ability to conduct transactions throughout the Asian session, European and American time zones all over the world can help you set the transaction timetable that best suits you.
No commission or charge the lowest commission
The majority of forex brokers do not charge commission or transaction fee added to each order placed online or over the phone. Forex transaction fees lower than other markets due to the floor forex service fees only through the difference between the buying price and selling price (bid / ask spread).
Orders immediately
Your orders will be done right away in normal market conditions. And you can also update information about rates and continually on your account. Noting that the forex floor only guarantee stop, limit orders and orders to the state under normal market conditions.
No short selling restrictions
Unlike the stock market, there is no limit short selling in the forex market. Trading opportunities exist in the forex market regardless of the buy or sell transaction and the market moves in some way. So you always have the right to autonomy of bull market or bear market.
No middle men
The direct transactions in the financial center and brokers bring many benefits to the transaction, however the downside is that it must go through intermediaries. Any related party transaction between the seller and the buyer or a financial instrument will be charged. Costs not only money but also time spent.
Spot currency trading eliminates the mediating factors, helps clients deal directly on the floor trading software and place orders instantly to changes from the market. The competition between powerful traders should also ensure that you get the best deals. Forex trading helps in trading transactions quickly and cost cheaper than trading securities.
The purchase / sale does not impact the market
How many times in the stock market you hear on the news as "Fund A" shares, "X" and buy stocks "Z"? The stock market is very sensitive to the buy and sell orders of large funds.
In spot trading, the huge size of the forex market makes the possibility of any hedge fund or a bank that controls a particular currency becomes very small. Banks, insurance risk, governments, speculators and trading group is only a small part of the foreign exchange market in which liquidity unforeseen.
Analysts and brokers have little impact on the market
You can watch TV regularly? You can hear an analyst of a prestigious brokerage firm that has been accused of recommendations for customers that buy a stock when the stock price is falling fast? Although the government has made interventions and discourage this activity, but it is a part of the market and has great influence on the psychology of trading investments.
IPO is a big deal for both companies to issue shares to the public and brokers. Relationship mutually beneficial and analysts work for brokerage houses to companies and customers.
But the forex market, as the first primary market, profitable banks in the world and the needs of the global market. The analysis in the forex market has very little effect on the exchange rate because they only analyze forex market as reference.
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