Top 7 Arguments – Forex Vs Stock Market
January 29th 2009 11:29 pm
You want to invest some of your hard earned cash, but you have this dilemma of the Forex vs stock market and the commodity market. Where do you invest? Well the Forex market wins hands down for me. It has a whole load of advantages over the other markets and that’s why it is so popular with so many people.
1. The Forex vs stock market debate can be started here. The foreign exchange market is open for trading twenty four hours a day because as one days trading in one country is coming to a close, another country opens trading so it is in continual operation.
2. The FX market does not have the same mode of thought as the stock market when it comes to the Bearish vs Bullish attitude. Although the FX market does have trends and cycles it is not the its driving force.
3. When one currency hits tough times, another currency will benefit as FX trading involves exchanging one currency for another.
4. Another of the Forex vs stock market arguments is that interest rates do not overly influence the foreign exchange market. When interest rates rise, they do ordinarily dampen the stock market but the opposite is true of the Forex market as the currency gets stronger.
5. There are over eight thousand different stocks on the NASDAQ and the NYSE and that can be very expensive in terms of time trying to keep on top of them all. With only four major currencies and around thirty other currencies to deliberate in the foreign exchange market, it is much easier to control.
6. You get all of the profit in the FX market as brokerage companies do not get your cash. Brokerage and commission fees hardly exist.
7. Analysts do not have an affect on the Forex market as they do in the stock and commodity markets.
If you take these pointers into the equation of the Forex vs stock market debate, I feel that the foreign exchange market has the clear edge on stock and commodity markets as to which is the better investment vehicle.
By: Martin Lauder
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