Stock Exchange Vs Forex Trading

First, what is forex? It is a short version of the foreign currency.Also called FX and 4X, but whatever name you use, is the world's largest financial market. From 1997 until the end of 2008, daily forex market is over $ 5,000,000,000 to $ 1,500,000,000,000 skyrocketed ..

Let's look at some of the reasons why the forex market is quickly gaining popularity over other markets.

Hours: 24 hours a day Forex market from the East in a time of about 7:00 to about 3:00 Sunday Time was traded to the East on Friday. Only the stock market from Monday to Friday with limited hours was traded.

Liquidity: Forex trading market of over $ 1500000000000 Every day at the fair, while only about 200 billion U.S. dollars. Only seven major currencies traded in the forex market, while more than 40,000 stocks from which to choose there.

Commission: no commissions to pay, while the Forex stock markets charge high fees and transaction costs.

Leverage: Forex market provides a great leverage power. Brokers usually offer 400:1 100:1 leverage. This means that an entrepreneur leverage of 100:1 you only $ 100,000 with $ 1000 margin control. Equity investors pay full price when you purchase shares, unless margin account and margin leverage is usually only 2:1.

Low minimum investment: The minimum investment to open a Forex account is as low as $ 300. Most brokers require a few thousand dollars as a minimum to open an account.

The market is complete. Trading foreign currency long as a superior investment opportunity by major banks, multinationals and other known entities. Now, my Internet between individuals in the forex market is very private. Business from home, office or virtually anywhere in the world. The trade in almost any time of day. Work part time or full time.

Obviously, the Forex market offers significant opportunities for those willing to invest in energy, focus, and money is low.

It is difficult for the new Forex trader to be successful in the Forex Market without understanding the principles and how it works. This knowledge can be obtained free forex training programs.