Most forex brokers charge no commission, instead they make their margin on the spread – which is the difference between the buy price and the sell price.
When trading equities (stocks) or a futures contract, or a major index like the S&P 500, often traders must pay the spread along with a commission to a broker.
Is forex same as stock?
A major difference between stock and forex markets is the fact that when you trade forex, you are simultaneously buying one currency and selling the other. This is different from how stocks are traded. You either buy the shares in the stock or you sell the shares in the stock.
Which is better stock or Forex?
Investment decision making is easy in Forex market as compared to stocks. 3- VOLUME: Foreign exchange market volume is more than $5 trillion daily which is huge as compared to volume of trade in stocks. Bid ask spreads in the stock market are wide. 6- LIQUIDITY: Forex trading gives more liquidity than stock market.
Can you make more money in stocks or Forex?
Currency rises and falls in relative value quickly; in order to make money off money, you need to act quickly. Stocks tend to have more gradual trends you can track over time. Stock trading is limited to exchange hours.
Is Forex a Good Investment?
Forex can be a very good investment compared to stocks. The advantage of a forex investment is that the trader is using leverage. For investors, Forex is a good way to make a nice ROI, but it can also take risks with it. As always, finding good account managers is very important.