| Forex trading (also known as foreign currency | | | | 400:1 leverage. You can profit big time with a small |
| exchange or fx trading) has become popular among | | | | amount of capital in forex trading. Of course, this |
| investors relatively recently, while stock trading has | | | | comes with a note of caution too, as this could mean |
| been around for ages. There are five benefits which | | | | that you might lose a fortune too, if you are not |
| foreign currency trading has over stock trading. | | | | careful. Leverage is one of the most appealing |
| In the forex market, you can profit both ways, | | | | factors of the forex market. |
| whether the market is bullish or bearish, unlike the | | | | If you are trading stocks, you will need to pay the |
| stock market in which you can only make profits | | | | commission of remisiers every time you buy or sell, |
| when the stocks go up, as short selling is prohibited. | | | | but in forex trading, there are no middlemen. |
| Individual retail traders like you and me, have equal | | | | Investors are able to interact directly with the |
| potential to profit in a falling or rising market. | | | | currency market and save money on commissions. |
| The currency market has unparalleled liquidity, with | | | | When you invest in stocks, you would have more |
| over US$3.8 trillion worth of currency being traded | | | | than 8000 stocks (varies between the stock |
| daily. The forex market is always moving and you do | | | | exchanges of different countries) to choose from, to |
| not have to worry about not having buyers when | | | | invest your money. It is difficult to track and analyse |
| you wish to sell, as there are billions of people who | | | | the performance of so many stocks. In forex |
| wants to trade with you. However, in the stock | | | | trading, there are only 6 major currency pairs to |
| market, if you bet on the wrong stock, you may | | | | choose from, and you benefit from the power of |
| have to hold your stocks for a relatively long period, | | | | concentration. If you manage to develop the skill of |
| especially for those less active counters. | | | | trading currency, expertise in trading just 2 currency |
| In the stock market, the maximum leverage is 2:1. | | | | pairs could make you as rich as George Soros or |
| But when you trade currency, you can have up to | | | | Warren Buffet. |