Forex Trading And The Stock Market – Similarities And Differences
Most people get their introduction to financial trading through the stock market. After all, it is the oldest and largest financial market in the world, right? Wrong! The forex trades over $2 trillion (with a “T”) a day, and has been around as long as money itself . What’s more, the forex is even easier for individuals to participate in than the stock market-and best of all, there are no commissions on forex trades!
That is one difference. But there are also plenty of similarities. Since most people have a relatively strong understanding of the stock market, and many may be considering a move from the stock market to the forex, this article will explore the differences and similarities between the two financial markets.
Differences
As noted above, there are no commissions on forex trades. This is because everything is done electronically. In fact, there is no physical place known as “the forex” — it exists entirely in cyberspace. That makes for much lower overhead, hence the “free trades” (see similarities for why trades...
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