6 Differences: Stock Market and Forex

There are some differences between Forex and Stock Exchange. Although these investment instruments in financial markets have similar characteristics which are apparently very obvious, there are significant differences between them. Today I will tell you the 6 differences between these two investment instruments.

1.Trading Hours

Both the stock market and the forex market are open in certain time periods and it is necessary to trade at specified times. Transactions are performed in the stock market market. For example, Borsa İstanbul is open only between 09.15 and 17.40 hours. A similar situation exists in other world stock exchanges. However, trading in the Forex market continues 24 hours a day.

That’s the first difference. The Forex market is open 24 hours a day, but the Exchange market is open only at certain times of the day.

2.Commission and Deductions

You must pay a deduction or commission at the rates determined by the brokerage houses you work in the stock market. Unlike Forex market brokerage firms do not make any deduction or commission from you. Forex traders are trading on the platform with the buy and sell prices they see.

3.Trading Speed

In the Forex market, traders do not have to wait to be able to trade, they can even trade with automated programs. The stock market is also fast, but trading can take minutes rather than seconds compared to Forex.

 4.Complexity

It is undeniable that the Forex market is a bit more complicated than the stock market, but in comparison to the stock market, Forex brokers prepare investors for the market with various written and visual trainings and provide one-to-one support at every stage. Moreover, all these are done free of charge by Forex brokerage houses.

5.Investment Amount

Traders can only trade in the amount of money they have in their accounts. In Forex markets, there is a system called “Leverage.. With the leverage system, Forex traders can trade with the multiples of the money in their accounts. For example, with $ 2000 in your account, you can use 50 times leverage in the Forex market and make $ 100,000 transactions, which is the most important feature that makes this market attractive. However, such a feature does not exist in stock markets.

6.Trade Area

Forex markets, unlike stock markets (stock market) is not connected to a particular locale. However, this situation has changed today and made the conditions fair in both markets. That is to say, in the past, stock market orders could be given by telephone or various other means of communication, which is no longer the case. Both the stock market and forex market transactions over the internet, it is possible to do from your smartphone.