Forex vs Stock Market

Two of the main differences between (and some would say advantages over) the forex market compared to the stock market are:

1. Trading hours. The forex market is open 24 hours a day. Trading is done over three continents, allowing a trader to trade continuously and to react immediately to events and new developments. The market opens on Sunday evening and closes Friday night.

2. Commissions. Electronic trading and competition have brought about a sizeable reduction in the bid-offer spread (the equivalent of commissions). The spread covers the risk of the market maker. The spread for the majors remain very low, but can increase as the liquidity of a specific currency drops.

Despite recent reductions of commissions through online stock brokers, the Forex market is considered, by some, to have the lowest commissions relative to trade size when compared to other financial markets. This is also in part due to the 100:1 leverage offered by most trading houses. A client with a $10,000 deposit can leverage this to $1,000,000. Some electronic communication network brokerages have introduced a per trade commision alongside a narrow pip spread.

Many retail trading houses would suggest that the large size of the market makes it impossible for a speculator to affect the market. This is not quite the truth - the stakes are higher, larger quantities of money are involved, and the bigger banks spend a lot of time and effort trying to manipulate the market. Governments have been known to step in and affect prices.

Unlike the stock market, where retail clients (individuals) have access to almost exactly the same prices as all other participants, the Forex market has several different levels of access and therefore commission costs or spreads. At the top are the largest investment banking firms such as Citi and Deutsche Bank, where the spreads or the difference between bid and ask prices are tiny. These spreads are a closely guarded secret, not normally known outside the inner circles of international finance.

Online Forex is The Fastest Growing Forex Investment Option

Since the first internet forex trade was back in 1994, the forex market has grown a long with the total growth of the internet.

for more than a decade this growth has rapidly advanced the forex market into becoming the biggest market in the world,bigger than the stock exchange and the futures market put together,and this escalating growth has been maintained for more than a decade,in a progressive and accumulative scale.

Welcome To Forex Market

Swiss Franc Technical Outlook

Higher highs and higher lows since the March low favors bulls longer term.

Near term, the decline from the top side of the channel is impulsive and the rally from 1.1828 is corrective. Expect weakness below 1.1828 in the next several weeks.
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