Forex trading (also known as foreign currency exchange or fx trading) has become popular among investors relatively recently, while stock trading has been around for ages. There are five benefits which foreign currency trading has over stock trading.

In the forex market, you can profit both ways, whether the market is bullish or bearish, unlike the stock market in which you can only make profits when the stocks go up, as short selling is prohibited. Individual retail traders like you and me, have equal potential to profit in a falling or rising market.

The currency market has unparalleled liquidity, with over US$3.8 trillion worth of currency being traded daily. The forex market is always moving and you do not have to worry about not having buyers when you wish to sell, as there are billions of people who wants to trade with you. However, in the stock market, if you bet on the wrong stock, you may have to hold your stocks for a relatively long period, especially for those less active counters.

In the stock market, the maximum leverage is 2:1. But when you trade currency, you can have up to 400:1 leverage. You can profit big time with a small amount of capital in forex trading. Of course, this comes with a note of caution too, as this could mean that you might lose a fortune too, if you are not careful. Leverage is one of the most appealing factors of the forex market.

If you are trading stocks, you will need to pay the commission of remisiers every time you buy or sell, but in forex trading, there are no middlemen. Investors are able to interact directly with the currency market and save money on commissions.

When you invest in stocks, you would have more than 8000 stocks (varies between the stock exchanges of different countries) to choose from, to invest your money. It is difficult to track and analyse the performance of so many stocks. In forex trading, there are only 6 major currency pairs to choose from, and you benefit from the power of concentration. If you manage to develop the skill of trading currency, expertise in trading just 2 currency pairs could make you as rich as George Soros or Warren Buffet.

Register for your free basic forex class worth $48, which reveals the Financial Science to successful forex trading.

Ang Sheng Wen is a forex trading coach with an eye for detail and a heart for people. As professional forex trader himself, he is a good example that anybody with the right education and the right coach, coupled with determination and perseverance, can succeed in making consistent profits in trading forex within a short period of time.
http://www.basicforexclass.com

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