Forex Trading vs Stock Exchange

The financial markets of the world have seen great changes in the recent years. The world is becoming a global village and connectivity is increasing at an unprecedented pace. In the past days, financial markets strictly used to be a playfield of big financial institutions and commercial banks whereas, the new avenues of opportunities in the market are now open to common people as well. There are many novice traders tempted by the rate of profit these markets offer to its participants.  Yet, the biggest obstacle in the way of traders to succeed, is their inability to choose the right option for themselves. Many traders after deciding to trade find it difficult to pick from the choices of stock, pips, futures or currency trading.

The prospects of profit in forex are always higher than in stock market. Forex being the largest financial market in the world, trades $ 5.3 trillion every day. It’s the most active market which runs 24 hours round the clock and provides highest liquidity to its traders.

There are only 8 currencies that forex deals with whereas there are innumerable companies that a stock trader has to follow when trading stocks. From fee to order execution, the two fields work and generate different results for the traders. There are also many automated trading platforms that make speculations and help traders in the execution of deals hence making it very convenient for them.

In the following visual of infographic, we are going to highlight all the factors that make these two kinds of trading different from each other. This picture will provide all necessary information about the two markets and guide traders with which path to follow.