Equation
So also in stock, in forex trading, the main purpose is to benefit from the difference in price movements.However, there are several things that differentiate the two. Many people think that forex is more 'sexy'.Let's look at the comparison.Comparison
CapitalizationNo one is bigger than the forex market, in any market and any kind. Which remains the biggest Forex. So it can be said the forex market is very liquid. For comparison, if we look at the stock market JSE trading transaction is approximately 4-7 trillion / day. Being the world forex market is 3.5 trillion dollars (Remember the dollar) , which means 1000 x fold greater. You can try to calculate how many zeros its own :)
24-Hour Market and non-stop.
Forex market is a 24-hour market indefinitely. Broker open from Sunday at 14:00 ET to Friday at 16:00 ET with customer service available 24/7 with the ability to serve the United States market trading, Asian, and European markets, you can customize your own trading schedule.Compare this with the example of a local stock exchange (JSE), open only on weekdays (Monday / Friday) at 09:30 s / d 16:00. For those of you who work formal (office) is definitely going to clash with your schedule.
Commission Free
Most forex brokers do not charge an additional fee (commission or transaction fee). Brokers had taken services from the spread between the buy / sell. As for the shares (JSE) you have to pay a fee of 0.15% The s / d 0.3% of the sale / purchase.
Transaction Speed / Order You do not need to queue as soon as possible to make transactions / orders . Unlike with stocks where you have to wait in line for your order to you can at realisasika. In forex is not necessary, very large market which allows the number of buyers and sellers is not limited. however keep in mind that the broker can serve your order as soon as possible to record a normal market, a condition where extreme price movements (volatile), the broker may delay order you in a moment.
Potential gains two Direction
Unlike stocks or equity, in forex you can benefit in both directions, either when the market goes up, down, or where prices / the market will move. In no term short sell stocks (aimed at obtaining profits when stock prices fall), Yes is similar, but you can not do it at all stock, only on certain stocks.
Complexity
There are approximately 4,500 stocks listed on the New York Stock Exchange. 3500 are listed on NASDAQ.Approximately shares which would you perdagankan / select? Have enough time to keep up on top of so many companies / stock? In forex trading, there are dozens of currencies traded, but the majority of the market is trading at 4 major pairs (USD, EURO, GBP, YEN). Are not four pairs much easier to control than thousands of stock?
Airport Free
You'll often with the term 'fried' in the stock, particularly in the local stock market / JSE. Now, why a stock can be fried? Because there is a person / group of people / financial institutions, with funding market is relatively strong, continuous buying a stock. This makes as if a stock is rising, and many individual traders who are affected to join in buying the stock. By the time the price has gone up in accordance with the wishes of the dealer, dealer to sell the shares as soon as possible (dealer profit). How to forex? Quite simply, kira2 capital needs how to move a market worth 3.5 Trillion Dollars, who's no point money that much. Perhaps the only Chinese state because according to the information that could have 4 Trilyuan dollar reserves. But what would he risk bet all the money just for 1 day. :)
Rumor
In stock a rumor or gossip .. kecil2 late, will be able to move the price. Especially if the rumors are sometimes packaged in the form of a distinguished professional, such as a stock TA guidelines and performed in TV, radio, etc. .. Sometimes it can move stock prices. But in forex can be said is not possible.Is it possible to spread the rumor reached the ears of all the traders in the world? You are responsible for yourself :)
Skope
In forex trading, means we are bound globally / internationally to financial markets around the world. When we play local shares, then you should look at is the Indonesian economy. And the local stock price movements (JCI), can never affect the forex trading (such as the price of the pair EUR / USD). But global conditions and sentiments that occur in the forex market, can sometimes affect up to local stocks or stock a particular country. The reason is such current EUR / USD rises (market / value of US down), it can be seen that the US economy is down. Usually when the economy US down US stocks also on down, the next day can affect to the JSE.
Forex and Stocks Comparison Table
| Forex vs. Stocks Comparison Table | ||
| Forex | Shares | |
| 24 Hours Non Stop | Yes | Not |
| Capitalization | Unlimited | Limited |
| Liquidity | Yes | Particular stock |
| Speed | No need Queued | Queue |
| Price Movement | Gain 2-way | Only when riding alone |
| Influence | Free of the influence of | Airport / Rumors |
| Skope | Global / World | Limited to state |
So ...? Choose Forex or Stocks ..?