Foreign exchange market (Forex) is the most liquid and the biggest financial market around the world. Investors or clients can trade through particular provider such as IronFX. This market is different from stock markets. Forex is an OTC market having no central clearing house and exchange where order will be matched. In traditional market, Forex isn’t popular among investors because it isn’t available to retail traders. In recent years, there is a chance for retail traders to involve into this market. What’s about stock trading? It’s been accessible much longer for any retail investors. Advanced trading technologies and computer have enabled easy access and low commission for retail traders, whether to trade Forex or stocks at IronFX.
The Instrument of IronFX Forex Trading & Stock Trading
So, which one is a better option for us? There will be comparisons of retail Forex trading and stock trading at IronFX. Let’s learn about the instrument’s nature. Each of them has different instrument to trade. Stock trading is the activity of buying / selling particular company’s share in a country. In fact, there have been different stock markets around the world. Many factors affect stock price’s rise or fall. In the other hand, Forex trading involves the transaction of currency pairs. A trader buys or sells currency pairs, therefore there’s the term called “exchange”. Forex traders at IronFX bet on economic condition of particular countries.
More Comparisons between Two Markets at IronFX
Next comparison between Forex and stock trading at IronFX is the market size & liquidity. Forex market is indeed the largest market in the world. Approximately, there’s regular transaction daily of US$3 trillion. As a result, it belittles the stock markets. However, there are thousands of stocks varieties in the market. Forex market only has some currency pairs to trade. Therefore, forex trading is vulnerable to price manipulation by professionals or big players than stock trading. Forex trading at IronFX gives the clients better liquidity than stock trading. Also, Forex trader can enjoy better value spread as measured up to stock traders.
Next, it’s about the trading hours at IronFX. Forex market always opens 24 hour while most of stock market opens from 9 am – 4 pm. It means any Forex trader can easily trade anytime while stock traders must follow the schedule. They are limited to the stock market schedule. Moreover, the time limitation of stock trading prevents the traders to obtain full information about the price. They can only watch the rise and fall of stock price during the available hours. In the other hand, Forex traders at IronFX won’t suffer from this disadvantage.
Another comparison between stock trading and Forex trading at IronFX is the affordability. As a stock trader, one should deposit certain amount of money as capital in his account. Traders should have at least tens dollars in general. In the other hand, Forex traders must include thousands of dollars. It’s because Forex trading only allows for privileged leverage. Forex traders at IronFX have larger transaction as comparison to stock market. In summary, both of the markets offer benefits for traders. However, if you don’t have much money, you can start with stock trading. It has more options of stocks to trade whatsoever.