Why Forex?: Forex vs. Stocks
Forex vs. Stocks |
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| *GFT is compensated by revenues from its activites as a currency dealer. |
Remember that both stocks and forex trading involve risk. Forex trading is not conducted on a regulated exchange and as a result, there are additional risks associated with forex trading.
Though stocks were traditionally viewed as an investment, recent volatility and instability has led to stock trading taking on a more speculative role. Many stock traders are also trading another speculative market with many differences – forex. Instead of trading stocks of individual companies, traders are switching to trading currencies in the world’s primary market. Greater leverage, sophisticated software and strong market trends have led many former stock traders to explore the benefits of currency trading.
GREATER LEVERAGE |
| Forex trading provides greater leverage than is found in traditional stock trading, which allows traders to control larger positions with smaller amounts of capital. This also allows you to trade the same size positions you might take with a stock broker, while leaving you with more available capital to trade more markets. GFT offers its customers up to 400:1 leverage. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. |
NO MIDDLEMEN |
| Currency trading is done by the trader, online. By trading directly with GFT, a dealer and a primary market maker, there are no extra parties between you, the trader, and the buyer or seller of the currency pair. This elimination of the middleman can save traders in time and fees. This is different than the stock market, where you may deal with a broker and the exchange, both who charge fees and commissions. This translates to quicker access and cheaper costs for currency traders. |
BUY/SELL PROGRAMS DO NOT CONTROL THE MARKET |
| How many times have you heard that “Big Business A” was selling “X” or buying “Z,” with an explanation of how this buy or sell will affect the entire stock market? The stock market is very susceptible to large buys and sells. On the other hand, forex is the largest, most liquid market. This makes the likelihood of any one fund, bank or company controlling a particular currency extremely slim. The extreme liquidity of the forex market is reflective of its many large participants from around the world, including banks, hedge funds, futures commission merchants (FCMs) and governments. |
8000 STOCKS VS 4 MAJOR CURRENCY PAIRS |
There are approximately 4,500 stocks listed on the New York Stock exchange, and another 3,500 on the NASDAQ. Which are you going to follow? Do you have time to research all the companies? In spot currency trading, there are 4 major currency pairs – EUR/USD, GBP/USD, USD/JPY and USD/CHF. If you want, you can branch out to the second-tier currencies. But most traders choose to concentrate on the major currency pairs. So choose your currency pair. Decide if you’re going to buy or sell. Then spend your afternoon on the golf course or with your family. |
COMMISSION-FREE |
| Simply put: no commissions, no clearing fees, no exchange fees, no government fees, and no brokerage fees. With the buy and sell prices, what you see is what you get. All you pay is the spread. This is because GFT is compensated by revenues from its activities as a currency dealer, including proceeds from buying, selling, converting as well as holding currencies and interest on deposited funds and rollover fees. |
SAME PRICE FOR BROKER ASSISTED TRADES |
| While forex trading with GFT, there is no premium for placing orders, whether you call your forex orders in, or use market orders, stop orders, limit orders or even contingent orders. In currency trading you, do not have to worry about extra charges. Ever wonder why a broker charges you more if they have to guarantee you a price than if you give them a market order with no price qualifier? Trade the currency market and stop worrying about it. |
TRADE WITH YOUR REAL-TIME PROFITS |
| Ever been up on a stock and wished you could leverage that profit and to buy a little more of the stock? In currency trading you can use your profits to trade. Use your realized profits to add to your positions. As you gain experience, you can experiment with pyramid trading strategies. The options are endless. |
CD01U.044.113007
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AVAILABLE CURRENCIES TO TRADE
FOREX VS. STOCKS
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