- An open market 24h/24 : On the Forex, you can trade at every moment of the day or night by using your broker’s platform. Whatever you trade during the hours of opening of US, European or Asian market, the most important is that the decision to trade is yours and not a market one.
- No fees on transactions : Not as brokers on the stock market, brokers on Forex do not take any fees. How do they make money so?? Well, the earn money with the spread, that is also the case on the stock market. According to your broker, the spread will change. You have a decision to make to choose your broker. Our section “Brokers & MM” will help you and give you all you need.
- Instantaneous executions of orders on the market : On the Forex, you click and the price is yours!! There is no delay between the moment you click and the moment you’re executed not as the stock market. If you have already trade on the stock market, you must have experienced this delay with a market order. Surprise, the price is far from you expectation!! This is due to the execution delay but on the Forex, this is over!!
- Buy/Sell, whatever the side : Maybe this happened to you to. You would like to short a stock but you can’t. Yes surely because on the stock market, the only way to do it in France is to use the “Deferred Settlement Service (DSS)”. But as you surely noticed, all stocks are not eligible to the DSS. You can’t short all stocks. With the Forex, this is over. Whatever the side, the pair you choose, everything is possible by a click. You decide your trading strategy and it’s not the market that lay down its rules.
- No middlemen : On the Forex, you’re directly linked to the market maker. There is no waste of time, no waste of money due to middlemen not like on the stock market. All process which delays the transmission of your order on the market just vanished on the Forex. This is how your trades are executed instantaneously.
- The market is not influenced : On the stock market, when a fund or a company or every big shareholder sell his stocks, the stock go down because they have a big influence on the market. This is also true is the buy side. On the Forex, this influence just vanished. To tell you that it vanishes completely will be a lie but the influence is low. Indeed, liquidity is so high that a fund or every other big actor can’t influence truly the market. This is your job to do the market and make appear a trend line!!
- Analysis are not twist : A lot of analyst are working for bank. Although, companies which are rated by analysts are actually clients of those banks. So, you will understand that there is a strong link between them. The company put under pressure the bank to obtain a good rate and if not they leave their bank. The bank doesn’t want to lose its client, so she makes pressure on her analyst to force him to grant a good marking to the company. So, a false analysis is published and don’t get in the trap, this happens all the times even if it is forbidden. On the Forex, this doesn’t exist, analyst are just looking to the market, they have no interest to twist their analysis.
- An easier choice : On the stock market, I’m not able to tell you the number of stocks but it is really big enough. For you, this is too much possibilities of investment that makes you lose your mind and do the wrong choice. On the Forex, there are only 8 major pairs. Other possibilities are accessible but it is easier for you to make a choice according to your conviction. You can follow the evolution of all major pairs, thing impossible on the stock market.
- A market in trend : You should know that the foreign exchange market is a market conducive to strong trends. Unless an exceptional circumstance as it is the case in crisis time, it is rare to see a parity remained in a range. The investor has thus important earning opportunities.
- A significant leverage: All the brokers put at your disposal a leverage that you can use or not. On each transaction, you can then choose the desired leverage according to your profile, but do not forget to apply the method of money management!
- A significant liquidity : on the Forex, it is traded each day about 3200 billion dollars which will therefore provide significant liquidity and that without any care about the parity you want to trade. Moreover, given that your counterpart is your broker, you will always have the opportunity to trade on the parity you want. Gone are the days where you want to buy a promising stock on the market but you could not due to insufficient liquidity.
- An open market 24/24H: The Forex is a market that never closes, except on weekends but this is not the market is not closed, that’s just your broker who simply forbidden you to trade. Your broker offers you the opportunity to trade from Sunday 11 pm to Friday 22 pm. You can then trade any time during the day, while returning from the office for example which is impossible on the equity market. In addition, it allows you to avoid opening gaps which are very common on the stock markets and can be very harmful to your portfolio.
- Free information : Unlike the equity market, all information is immediately available through your broker or specialist websites. You do not need a subscription to reuters or bloomberg to follow the news like this happens on stock markets
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