Forex VS Stocks
With over USD 5 trillion traded every day, forex is the largest trading market. Forex proves to be a favorite among traders for its liquidity, round-the-clock trading, and high levels of leverage.
There are dozens of currency pairs, but traders focus primarily on the most traded ones, i.e., USD, JPY, EUR, and GBP.
By contrast, there are thousands of stocks available. For example, NASDAQ alone has more than 3,100 stock indices listed on its platform! As you can imagine, it can be hard for traders to keep track of all of them.
Going into more detail, here are six reasons why forex is better than stocks:
1. Greater market volatility
Whenever you enter a market, volatility plays an important determining factor.
For short-term traders, the forex market is perfect, as traders may profit from a quick price drop in the foreign exchange rates.
But what does “short-term” mean? In forex, “short-term” refers to trades that last less than a day. The biggest advantage of this is that you don’t take any risks when you are out of the market. Consequently, traders need to dedicate only a few hours a day to trade forex to make money in real-time. This is why it’s important to have a trading plan so as to not act impulsively for fear of losing a good opportunity. SHR Capital offers free Forex Signal UAE to help you make informed decisions.
On the other hand, trading in stocks requires more time investment. Plus, the stock market can be heavily impacted by large buying or selling orders, meaning that your investments follow the ups and downs of the market.
2. Bigger market size
Although stocks may be traded internationally, most of them take place on a national level.
The power behind what makes forex the best online trading platform in the UAE is that it operates on a global scale, where traders can enter the market anytime.
3. Better trading hours
Trading hours are crucial in any trading platform, and when it comes to the difference between stocks and forex, it plays a determining role.
For stocks, the opening hours are between 9.30 AM and 4 PM Eastern Standard Time (EST), except for market holidays.
On the other hand, the forex market is open 24 hours a day. However, there are four significant trading sessions that take place around the world’s biggest markets: Tokyo, Sidney, London, and New York. These are generally open from 5 PM on Sunday to 5 PM on Friday.
With a forex market always open somewhere in the world, you can literally trade anytime you want.
4. The unbeatable power of leverage
You just have to look at the difference in leverage between forex and stock indices to understand the appeal of the forex trading market.
If stocks have leverage of 2:1, forex has a leverage level of 50:1, if not higher.
What this means is that forex traders need to have only 2% of the value of the foreign currency they are trading available in their brokerage account. Whereas stock traders must have 50% the value of the stocks they are trading in their accounts.
5. Instant orders executions
In forex, you trade in real-time, and the price you decide to buy and sell currencies is the one you choose to lock on. So you can instantly execute orders without any price fluctuations.
Things don’t work like this in the stock market because the price is constantly changing.
Which should you choose?
Choosing to trade forex is a flexible and personalized affair. Something which is not always possible when trading stocks.
In forex, you can base your trading decisions on what best fits your trading plans, goals, strategies, and risk tolerance – factors that should make you realize why forex is the best online trading platform in the UAE. And as you research for the best forex broker in the UAE, there are some crucial things you need to consider, such as trading instruments, trading platforms, trading tools, and customer support.
Why trade forex with SHR Capital?
With SHR Capital’s professional guidance and trading tools, you’ll have the support you need to enter the forex trading scene. With our free daily forex trading signals, you can learn to invest in the UAE forex market with comfort and ease.
With an international reputation as the best broker in the UAE, SHR Capital provides its traders access the best market leverages to make profits.
With SHR Capital, you have access to exclusive trading instruments and tools to help you make informed decisions when executing orders.
With SHR Capital’s training resources, you will unlock the key to a straightforward and reliable trading experience to learn how to effectively trade forex in the UAE. With the option of over 50 currencies, including major, minor, crossing, and exotics, it’s really no surprise that SHR Capital is considered the best online trading platform in the UAE.
Benefit from free forex signal in the UAE, and with SHR Capital’s desktop and mobile trading app, you can trade wherever and whenever you prefer. And for the Sharia-law abiding Muslims, there is also has a swap-free account.