Trading Stocks VS Trading Forex

Trading has become a popular career and it’s no wonder why. With enough capital, a strategic mind, a little patience, a brave heart, and a bit of luck, you could go ahead and become a successful and financially stable trader. Many people have already given up their daily office jobs in exchange for trading assets by analyzing and anticipating market movement. Sometimes it’s easy while other times it can be risky. However, many have already conquered the market and many more will do. Some have made money by trading stocks while others hit their financial goals by trading forex. So which is better?

Let’s find out.

Why Stocks?

The stock market is the older trading arena between the two. It has already established itself as a solid establishment that thrives and shrinks as the economy. It has physical entities in New York, London, and Tokyo. So why should you choose to trade stocks? Well, because of the following.

1. Better Profit

In retrospect, trading blue chips offers better earnings than trading currencies in the forex market. “But why?” you might ask. Well, because despite the overwhelming trade volume that the forex market carries, the stock market’s assets have greater movement in the long run compared to currency pairs.

2. Wider Options

Stock trading just gives you more options and thus more opportunities to earn. There are thousands of companies to choose from. Just do your research and you’ll definitely find a company that will benefit you greatly.

3. Complete Freedom

You are your own boss. Trade whatever stock you want using a trading strategy that you like.

 

Why Forex?

The Forex market is relatively the newest market in the world. However, despite its young years, it has already advanced to become one of the fastest growing markets with a trade volume that amounts to trillions. The market exists solely online and you get to trade currencies anytime. Here’s why it’s better than stock trading.

1. Accessible Trading Hours

The Forex market trades round the clock. This is because as one market closes, another one opens in another side of the world. This timezone differences let forex traders keep doing their business from one currency pair to another, anytime.

2. Affordable Starting Capital

It needs much less capital to start trading in the forex market. Once you have a trading platform, a bit of capital, and a knowledge of the basic forex concepts, then you’re good to go.

3. Better Leverage

The forex market has better leverage than the stock market. This means you can earn as much as five times more than your bet. Unlike the stock market which can only leverage you at 2:1, 1:1, etc.

The Verdict

The better market to trade in is up to you. If you have a lot of money and a great deal of knowledge and research about the stocks, then go to the stock market. For traders who want to trade short-term with little capital, then trade at the forex market.