Forex trading Vs Equities

Any beginner forex trader asks himself in one point or another - "Is the forex market is the best market for me to invest in?" In this series of articles we will try and point the advantages of the forex market over other financial markets, starting with the renowned equities market.

The first main advantage the forex market has to offer is the 24-hour availability. When trading forex it doesn’t matter whether it's 9am or 9pm, there will always a trader somewhere looking to make a sell or a buy. This gives you the ability to react to any financial news, as they occur. Also, the prices of forex aren't influenced by after-hours trading.

Another fact of the forex market is its unparalleled liquidity. Its liquidity derives from its size, over 50 times larger than the US stock exchange. The amazing size of this market and its true liquidity (especially of the major currencies), generates stability.

The leverage online forex dealers offer is substantially larger than any offer you'll find on the equities market. The margin online forex offers is far greater than the usual 2:1 you'll find at equity brokers. The margin in forex trading can go up to 100:1. You can learn more about margin trading in our Margin trading overview article. Read more about other advantages of the forex market in the next article.

Larry Mitchell, Editor. 2005–09–27