Trading forex (foreign exchange), aka foreign currency, has recently become one of the many business opportunities taken. Plus, forex trading is widely mentioned in various media, both digital and print. Now, stock brokers with VIX are getting more attention. Apart from forex trading, what is in great demand is stock trading. But between the two, forex trading is predicted to be more profitable than stocks.
Here are some of the advantages. Check out the reviews carefully.
1. Less Capital
Money or capital has always been one of the main factors in determining something. Even when deciding to trade. The capital used to trade forex is less than stock trading.
Even now, many brokers offer capital with only US $ 1. Profits can be 100 or even 1000 times. Meanwhile, for those who want to trade stocks, they require a large enough capital.
Apart from that in terms of commission for brokers, forex trading does not charge additional fees.
2. The Forex Trading Market is Open 24 Hours
For those who have a myriad of activities, the forex trading market is quite easy. Because it is open 24 hours a day in 5 working days. This 24-hour trading is also standard around the world, following world forex regulations.
So whenever you have time to trade, you can just contact CS. Meanwhile, for stock trading, time is arguably less flexible.
3. Sufficiently High Liquidity
Another advantage of forex trading is that it has high liquidity. This means that you can withdraw funds for transactions at any time. Almost every day the turnover in the forex market can reach trillions of dollars per day, and that can be used for transactions.
As for stocks, funds flowing into the stock exchange need to be distributed among hundreds or even millions of shares every day. So the liquidity is not as flexible as forex or forex.
4. Most of them have a trial account
To attract even more traders, brokers are competing to give the impression of being trusted. So from that now many forex trading platforms provide demo accounts or trial accounts with fictitious capital.
So, this is of course very useful for novice traders. Can simulate before making transactions with real capital.
This trial account can also train traders to be even more observant in taking opportunities in the future after actually jumping. And this has been proven, many traders have learned it from this trial account.
5. Low level of complexity
Another thing that makes many traders own forex is the low level of complexity. Just imagine, when investing in stocks, more than 500 companies are offering their shares.
You need a lot of time to carry out investigations one by one so that you have minimal losses. Especially if you are a beginner, of course, there will be many other things that need to be learned.
However, if you choose forex trading, it will not be as complicated as stocks. There are only a few types of currency to choose from. There are American dollars, euros, pounds, and also the Japanese yen. Of course, because the selected eye type is not too big, you will have plenty of time to inspect other factors.
That is the advantage of forex trading compared to stocks. But of course, there are advantages and disadvantages to each. For those who have been in stock trading for a long time, of course, it will be more tempting for stocks and vice versa. Therefore, the choice is yours.