Why Trade Forex Instead of Stocks

by Edwin E.
(N.Y. USA)

Why trade forex instead of stocks

If you know anything about the various trading markets you will probably know that trading currency in the Forex market is one of the hottest and most popular forms of trading that there is today. The real question many people who are standing on the outside looking in are saying is why. The question why trade Forex instead of stocks is a fair question and it has some very specific answers.

Stocks are something that just about everybody can trade. Of course, the more you trade, the better your chances are at striking it rich. But regardless, even a small time investor can get pretty active in the stock market.

The Forex market wasn't always like this. While most people may not be aware, the Forex market is really nothing new but in the past, the only traders that could actively get involved in Forex were the big time traders or the large corporations and banking institutions.

Then, in an attempt to open the market to more traders, Forex trading introduced the mini and micro Forex accounts. With as little as $25 in a trading account a person could actively trade Forex. In addition, with the unheard of amount of leveraged trading in Forex, you could have a great deal of profit potential off a relatively small trade. If there is one main reason why trade Forex instead of stocks, this would be that reason.

Another answer to the question, why trade Forex instead of stocks is the amount of time it takes to see a profit. With stocks, there are such things as day traders, but the profit margin is fairly low. That is because stocks were meant to be traded on long positions.

Forex is a fast trading market, and you don't hang on to your currency pairs much longer than a day. That mains that if you make a winning trade, you won't have to wait years to realize it.

When the question of why trade Forex instead of stocks, these two reasons make a very compelling argument and with the increased chance of profit as well as the short amount of time a trade takes from buying to selling and it is easy to see why so many people are rushing to Forex.