Shares market, or Forex, what is better?
Earn money with your mind, predicting the direction in which the price will go - a dream of many young and not so young people. Having seen or heard advertising another Forex broker, someone opens an account and start trading. And someone makes a more important step, opening Deposit a large sum of broker the stock market. Market shares as currency, allows you to receive money from the air, analyzing the price. But to become a professional trading, you need to market understanding and practice.
Below we present some of the advantages of the Forex market before the market shares.
Peculiarities of market shares
Securities market, it is primarily the United States, very well regulated by the relevant authorities. The Russian stock market conditionally will not consider here other realities. The task of this regulation (in the US) is to ensure the financial security of the participants, first of all traders, and standardization of procedures. Investors (the players) are protected, work exchange takes place smoothly and effectively, the impact of unfavourable market conditions on the economy minimized, the competition is supported, unfair practice is prevented is ideal adjustment. The fee for this - many commissions that are paid players (investors) and the other trading participants.
For example, in the United States adjustable authorities are represented by the securities and exchange Commission (SEC), the Federal reserve Board, Commission on trade commodity futures trading Commission (CFTC), and the National Association of securities dealers (NASD). In Russia, the work of the stock market is regulated by only one authority - service of the Bank of Russia on financial markets. The difference in approach is obvious.
Next. To exit on the new York stock exchange, you must at least from 2000-5000$. For a more comfortable trading need more large amount - 10 000 - 50 000$ and more. Maximum leverage is 1:10, but more likely to use 1:1, 1:2 or 1:3. little leverage reduces the risk of losing money bidders.
It is believed that the strategy work out better in the stock market than in the Forex. It is connected with the fact that the stock market offers thousands and tens of thousands of securities, thus, the “specific weight“ of traders per 1 share is small. Forex majority of players are trading the same Euro-dollar and the pound. As a result of forecast volatility of stock price generally easier than popular currency pairs.
Features currency exchange
Trade Forex with minimum Deposit of 1-10$ (your account). Leverage up to 1:500 or 1:1000. Forex brokers provide a convenient and functional trading terminal MT4 or MT5. Open a demo account is simple, the procedure takes a few minutes.
Quotations of currencies, as licensed broker Forex easy to verify. Feedback about the broker BC of his purses etc. find no problem at all. Therefore, with the choice of a broker to decide easily enough.
Forex trading does not require large fee. Trader pays spread and, sometimes, one time fee for opening a transaction (often accounts NonDealingDesk (NDD)). Input-output of money through popular payment system is carried out from several seconds to several minutes.
At Forex is very popular auto forex robot. Purchase of finished or order an experienced programmer trader robot own strategy is very simple.
Note also that the currency pair will never fall to zero, is not impaired. On the stock exchange of the action may cost a couple cents, having a price of a few dollars a week earlier. Currency pairs on the Forex is provided by the movement, sufficient for good money. Main is to correctly define the vector of this movement (trend).
The benefits of Forex before the stock market
1. The amount of initial Deposit is minimal.
2. Easier to open an account and start trading.
3. High leverage (more profit).
4. Possibility to create and use of expert advisors.
5. Minimum fee.
6. Great choice of accommodation reliable brokers.
7. The speed and convenience of account replenishment.
To conclude. Both exchanges are of interest for profit trader. With what to begin? It is easier to do on the currency market. But nobody prevents you from parallel look at and start trading on the stock market. Both directions are promising. Often traders test their strength on both fronts, and later stop on one thing, that allows to make a profit.
Success in trade!
Go back Currency trader Forex / Next article Types of accounts Alpari