Forex Vs Stocks
Forex Market 24 Hours
Like some supermarkets that are open 24 hours, Forex is a "supermarket" Currency open 24 hours a day. Forex opens in most of the brokers on Sunday at 3-5 pm EST until Friday at 4 pm EST (two hours of New York, it must be borne in mind that the opening and closing (Sunday) (Friday) may vary broker to broker). In this way the operator has the ability to operate in the sitting American, Asian, European, which gives the operator the advantage of being able to react to certain events or news to emerge, and gives the operator the opportunity to decide their schedules .
No Commision
Most of the brokers do not charge additional fees or commissions to buy or sell currencies both online and by telephone. Due to a fixed spread, consistent and transparent. The cost of the buy/sell in the forex market are much lower than any market, stock, futures, etc.
Orders Executed Instantly
In a normal market orders are executed instantly. The execution of orders at a given price in a normal market are done instantly. The operator performs the order at the price updated in real time. There is no difference between the price shown by the broker and the price at which the purchase order. There are special conditions in that market volatility is such that orders can be delayed but under normal conditions there are no such delays.
No Restrictions in Short-selling
Unlike the stock market, forex has no restrictions to open sell positions (short). In Forex there is a chance to buy or sell regardless if the market is bullish or bearish. Due to a Forex somebody always buy a currency and sell another at the same time, there is not a structural bias in the market. An operator can operate both as a market upward in a market on the downside.
Relations between Stock Market and Forex
The stock market serve as a key indicator for the forex market. Technology has facilitated the possibility of investing in other markets than the local market / country, and that no matter their geographical location. Therefore it has forged a relationship between the stock market and currency of the country: So if the stock market is upward, it increase the investment in dollars, but in a market on the downside, investors tend to sell shares of companies in the country leading to recover capital and invest in another country.
| Advantage | Forex | Stocks |
| 24 Hour Market | YES | NO |
| No Commision | YES | NO |
| Instant Execution | YES | NO |
| Short-selling | YES | NO |
No Intermediaries
Stock Markets tend to be centralized have advantages for the operator. But a problem with is the need for an intermediary, so we need an intermediary between the stock market and the operator. However Forex intermediary does not exist and thus the operator may buy or sell in the foreign exchange market without physical intermediary that can buy or sell a particular pair at the time that the wish or thinks it is appropriate. In the absence of an intermediary, the operator gets higher profits at low costs.
The market is not controlled for buys or sells
The stock market is a market more susceptible to speculation based primarily on rumours of buying or selling by other companies. We can see that when a big company buying another X relatively smaller and the value of the company's share capital and rises in value. But the stock market is also likely when you think that a company has been making profits that investors tend to take profits by selling the shares.
The Analyst and Firms are less influenced.
As we have already said the stock market is more influenced by rumours of buying from one company to another. That's why sometimes the firms or analysts can give a purchase of a particular action when such action this fall based on rumors of a takeover of company X to company Y.
In the forex market, analysts analyze the forex market and are not influenced by rumours of purchase. This is a market that generates billions of dollars a day to banks and certainly is a need for global markets.
Four currencies against thousands of Shares.
In the forex market there are 4 key pairs while in the stock market there are thousands, just talking about the New York market and NASDAQ, the shares may reach 8000. So analyze 4 pairs keys is much easier to analyze thousands of shares. In Forex obviously there are a dozen pairs but the pairs more moved are 4 pairs.