There are approximately 2, stocks listed on the New York Stock exchange. In spot currency trading, there are dozens of currencies traded, but the majority of market players trade the four major pairs. Stocks has no chance! Here are a few more:. The forex market is a seamless hour market. Most brokers are open from Sunday at 4: With the ability to trade during the U.
Most forex brokers charge no commission or additional transactions fees to trade currencies online or over the phone. Combined with the tight, consistent, and fully transparent spread, forex trading costs are lower than those of any other market. Your trades are instantly executed under normal market conditions.
Under these conditions, usually the price shown when you execute your market order is the price you get. Keep in mind that many brokers only guarantee stop, limit, and entry orders under normal market conditions. Fills are instantaneous most of the time, but under extraordinarily volatile market conditions, like during Martian attacks, order execution may experience delays. Unlike the equity market, there is no restriction on short selling in the currency market. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or whichever way the market is moving.
Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market. Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money.
The cost can be either in time or in fees. Spot currency trading, on the other hand, is decentralized, which means quotes can vary from different currency dealers. Competition between them is so fierce that you are almost always assured that you get the best deals. Forex traders get quicker access and cheaper costs. The stock market is very susceptible to large fund buying and selling.
In spot trading, the massive size of the forex market makes the likelihood of any one fund or bank controlling a particular currency very small. Banks, hedge funds, governments, retail currency conversion houses, and large net worth individuals are just some of the participants in the spot currency markets where the liquidity is unprecedented.
Have you watched TV lately? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients.
That catch will never disappear. Analysts in foreign exchange have very little effect on exchange rates; they just analyze the forex market. In the battle between forex vs. Stocks shows a strong victory by Mr. Will it go for with Mr. Partner Center Find a Broker. Next Lesson Why Trade Forex: If opportunity doesn't knock build a door.More...