5 Advantages of Forex Trading Compared to Stock Trading

Trading forex (foreign exchange) aka foreign currency, lately become one of the many business opportunities taken. In addition, forex trading is widely mentioned in various media, both digital and print.

In addition to forex trading, another much in demand is stock trading. But between the two, forex trading is more profitable than stocks.

Although both types of investments "high risk and high return" there are many advantages offered by forex trading compared to other types of trading, including stocks. Technological advances have also had an impact.

Reported DailyFX.id here are some advantages. Check out the reviews carefully yes.

1. Less Capital

Money or capital is always one of the main factors in determining something. Even when deciding to trade. The capital used to trade forex is less than trading stocks.

Even now there are many brokers that offer capital with only US$ 1 only. Profits can be 100 or even 1000 times. While for those who want to trade stocks, requires a considerable capital.

In addition, in the case of commissions for brokers, forex trading does not charge additional fees.

Usually, they take advantage of spreads (or the difference between trade and buy rates). Meanwhile, for stock brokers, it will usually cut commissions between 0.1 - 0.3% per transaction, be it when selling or buying.

The selection of brokers as much as possible choose a broker that has been regulated Bappebti, following the list of regulated Indonesian forex brokers Bappebti (Commodity Futures Trading Supervisory Agency, Ministry of Trade) summarized by the DailyFX.id.

2. Forex Trading Market Open 24 Hours

For those who have a myriad of activities, this forex trading market is quite easy. Because it's open a full 24 hours in 5 business days. 24-hour trading is also standard around the world, following the world's forex regulations.

So whenever you have time to trade, you can contact CS. Meanwhile, stock trading has arguably less flexible time.

The stock market will usually be open during office hours. From 08:00 AM or 09:00 AM to 09:00 PM. Of course, this is quite a hassle for office workers who want to trade stocks. Time will come to collide.

3. High Liquidity

Another advantage of forex trading is that it has a fairly high liquidity. This means that you may withdraw funds for transactions at any time.

Almost every day the turnover fund in the forex market can reach the number of trillions of dollars per day, and it can be used for transactions.

As for stocks, funds flowing into the exchange need to be distributed to hundreds or even millions of shares every day. So the liquidity is not as flexible as forex or forex.

4. Most Have Trial Accounts

To attract more traders, brokers are vying to make a reliable impression. Therefore, nowadays there are not a few forex trading platforms that provide demo accounts or trial accounts with fictitious capital.

So, this is of course very useful for novice traders. Can simulate before making a transaction with real capital.

This trial account can also train traders to be more observant in taking opportunities in the future after actually diving. And this has been proven, many traders who learn it from this trial account.

5. Low Complexity

Another thing that makes many traders have forex is the low level of complexity. Just imagine, when investing in stocks there are about 500 more companies that offer their shares.

You need a lot of time to investigate one by one to minimize losses. Moreover, if you are still a beginner, of course there will be many other things that need to be learned.

But if you choose forex trading, it will not be as complicated as stocks. There are only a few types of currencies to choose from. There are American dollars, euros, pound sterling, and also Japanese yen. Surely because the type of eye chosen is not very large, you have a lot of time to inspect other factors.

But if you choose forex trading, it will not be as complicated as stocks. There are only a few types of currencies to choose from. There are American dollars, euros, pound sterling, and also Japanese yen. Surely because the type of eye chosen is not very large, you have a lot of time to inspect other factors.

Such is the advantage of forex trading compared to stocks.

But of course, there are actually advantages and disadvantages of each.

For those who have been in stock trading for a long time, of course it will be more tempting for stocks and vice versa. Therefore, the real choice is yours.