Any newcomer in the field of trading is trying to guess: Forex or stocks? Which one is better?
Let’s answer this question, having understood with the basic economic concepts. Today we are in a low-interest rate environment. Central banks around the world, for the most part, are still struggling with low growth
What is the result for you?
Basically, keeping money in a bank, you get only a small benefit. In many large economies, the interest paid on deposits is less than the rate of inflation. If we compare trade in the forex market and trade in shares, it turns out that each market has its own features. In the end, it comes down to how important these features of the markets are for you personally.The Forex market is decentralized. It is a trading network of participants from all over the world. Major players in the Forex market are, central banks, hedge funds, investment banks and commercial companies.
The stock market is a comprehensive concept that includes groups of buyers and sellers of shares. The company’s shares, as the name implies, offer a share in the property. Usually, though not always, these transactions are conducted on stock exchanges. Stock exchanges provide a transparent, regulated and convenient platform for buyers to conduct business with sellers. Trades on these exchanges were historically held at the stock exchange, and each participant shouted the price at which he wanted to buy or sell shares, but the trend of recent years was strongly linked to electronic trading. When we consider the Forex market against the stock market in terms of size, Forex wins.
Why are we interested in size?
The larger size of the Forex market gives it more liquidity.
The Forex market is extremely liquid. This is the result of a huge number of traders at any time. Large, popular stocks can also be very liquid.