Forex Trading vs. Stock Trading – Which One should You be Trading?

Forex Trading vs Stock Trading, In this article we will help you decide which of these two markets is more suitable for you as a trader.To get more news about forex vs. stock, you can visit official website.

Active investors with an internet connection have almost instant access to a wide range of trading tools, from stocks and industrials to futures and forex. While the markets are all somewhat interconnected, there are stark differences between them.In addition to understanding yourself and your trading style, the other main factor in determining which market is right usually rests on your risk tolerance.
If you’re more of a buy-and-hold type of investor, stocks are probably better for your style. However, if you’re a short-term trader who doesn’t mind volatility, markets like forex might be more your thing. Most foreign exchange and stocks traders use the same popular strategy, technical analysis. Both traders use the same methods of price action analysis, to determinate how to trade.

You can trade both markets in two directions – take a long trade or a short-selling trade.

Both stock traders and Forex traders need discipline and a work plan to succeed. Without discipline, your ability to succeed in trading is very low.
For some traders, the heavy hand of regulation present in the stock market may feel too restrictive. However, these regulations protect investors in ways they are not covered in the forex market.

This is one of the most appealing aspects of forex to traders who are not risk-averse. In normal stock trading, the maximum leverage available is 4:1. On top of this relatively low ratio, there are also qualifying requirements a trader needs to go through before being approved for it. Many traders never qualify for a margin account.

In the forex market, things are very different. In order to gain access to an account with high leverage, a trader only needs to open an account. Once active, a trader can access up to 200:1 leverage in some countries. However, in the United States, that number is limited to 50:1.
Trading hours
The forex market is a continuous market that stays open 24h a day. For some traders who come alive at night, access to the forex market is a big plus.

The stock market hours are 9:30 am to 4 pm EST Monday – Friday (excluded Premarket and Aftermarket hours). For some traders, restricted trading hours are necessary. It gives you the ability to keep focus and to set up your schedule.The high volume of the forex market means traders can generally get their orders executed closer to the prices that they want. The higher liquidity of the forex market also means that traders are better equipped to enter and exit the market.

This differs from stock prices which are mostly moved by news associated with the company’s stock or the industry in which the company falls under. That news moves stocks on a daily basis, which means that every day you will have amazon potential trades.

Both markets are prone to shifts in response to large-scale changes in economic conditions or political shakeups which may interfere with the economy.

Commission and trading costs
Today most American brokers don’t charge commissions on executing a trade. If it’s a broker outside of the US it will usually charge between 1c per share or a minimum of $2, so if you bought 300 shares of AAPL (Apple inc) you will pay $3 (1c per share) and when you will sell those shares you will pay extra $3. If you bought 50 shares of AAPL you will pay $2 (minimum), and not 50c.
Forex Trading vs Stock Trading which is more profitable
The leverage in the stock market is limited to 1:4 while the leverage in the forex market can get up to 1:50 in a regulated broker, Remember that leverage cuts both ways. It can be a formidable accelerator or it can crush you.

In contrast, today still the most profitable way is to Buy-&-hold stock for the long term.


As for traders, The people who make the money are the ones who are slow and steady traders. They have money/risk management, They do a lot of homework, spend a lot of time researching, and constantly monitored their holdings. Those people will do well.These are traits that if you adopt and realize that it is not a “game”, this is life, you can earn both Forex and Stocks.