5 reasons why Forex trading is better than stocks

Foreign Exchange or Forex (FX) becomes the alternative investment for who have suffered from the equities market which have been went through chaos recently. There are plenty of reasons to learn Forex trading, such as:

1. Currencies tend to trend and are more predictable

Many astute currency traders believe that the movement of Forex market is in predictable patterns. Currencies have a tendency to trend as many traders say, “ the trend is your friend, until the end, when it bends”. This tells us that if you learned how to read the charts and found the trend, it would be the chance for you to make profit.
Historically, currency pairs found to follow certain movement pattern. For example, during the crisis, there will be “safe” currencies that investors flock to.

2. High degree of transparency of Forex market

Comparing to the currency or foreign exchange, the stock and bonds are found to be not predictable as it. Wall Street corporations have got a reputation for having the nasty habit where does not telling their investors everything. Worse yet, at the times they have stifled the truth because of the negative effect which could have on the corporate bottom lines.

3. Forex is a liquid market

Forex is the over-the-counter market which trades 24 hours a day, 5 ½ days a week. The large volume of trading dwarfs the stock market. It is undeniable that such a large market is extremely liquid where losses would not be occurred because of waiting for brokers execute the transaction, as the orders are executed at real time.

4. Low startup cost

There is a low startup cost for entering into the Forex market because the brokers would not charge commission for the trade. It is easy to start trading with few hundred dollars and it could multiply your investment if you know well about the Forex market.

5. Currency trading course

As there is still risk involve in the Forex market, it’s better to learn at least a few basics before you sign up with any broker. The Forex courses are available on the internet.


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