How Does FOREX Compare to Other Investment Markets?

Commission-free trading:
In the equities and futures markets, individuals generally place their orders with a broker, who in turn routes the order to a market maker or exchange where the order is actually executed.
As a result, two parties charge fees: the broker charges a commission, and the firm who executes the order on the exchange charges a spread (a cost that is usually hidden in the equities and futures market, but is transparent in the FX market). In the FX market, you pay only a very small spread - and thus enjoy a much lower transaction cost.

Automated Margin Watcher:
Trading on margin, or with borrowed funds, in the equities and futures market is extremely risky, as the trader can be liable for more than their original deposit if the position goes against them.
In the FX market, though, trading on margin does not possess the same risk: traders' positions will be closed out if the position goes against them and their account value falls below their margin requirement.

Short Selling Without An Uptick:
Short selling, or the ability to enter a sell position and profit if the price goes down, is just as easy as buying in the currency market. While most equities markets have rules that hinder short selling - like the uptick rule, which states that the last price must have been an upward movement before a trader can enter a short order - the currency market does not have the same rules. Traders who think the euro will rise in value can simply buy euros and sell dollars;
alternatively, those who think the euro will fall in value can sell euros and buy dollars, all through the same single trading account and with the same amount of ease. As a result, the currency market presents opportunities for profit regardless of economic cycles.

24 Hour Trading:
While most exchanges have limited hours, the banks and market makers that operate the currency market are open 24 hours a day for trading. With most forex brokers, traders have access to the FX market from Sunday 5 PM EST to Friday 4 PM EST.

100:1 Leverage on Standard Accounts:
The leverage ratio, specifies the monetary amount a trader can trade above and beyond his/her initial deposit. The FX market allows for greater maximum leverage, and thus allows traders to more precisely customize their level of risk aversion.

About the Author

Toby Smitz is a full time forex trader at fxtsp.com. Click Forex to vist our site.

Written by: Toby Smitz

How Many Forex Order Types There Are And How To Use Them In Your Favor
The Forex market is growing rapidly and while Forex trading is not...
how_many_forex_order_types_there_are_and_how_to_use_them_in_your_favor.htm

Three Important Forex Concepts For New Traders
The Forex market is growing rapidly and while...
three_important_forex_concepts_for_new_traders.htm

Forex Fund Averages 20 Per Month
The Forex market is growing rapidly and while Forex tr...
forex_fund_averages_20_per_month.htm

Impress Your Date With Forex Trading Lingo
The Forex market is growing rapidly and while ...
impress_your_date_with_forex_trading_lingo.htm

What Is A Forex Broker
The Forex market is growing rapidly and while Forex tradin...
what_is_a_forex_broker.htm

Forex Trading Information Beware Of Frauds
The Forex market is growing rapidly and while Forex trading is not simple, it ...
forex_trading_information_beware_of_frauds.htm

Getting Started With Forex Trading
The Forex market is growing rapidly and while Forex trading is not simple, it is eas...
getting_started_with_forex_trading.htm

The Duty Of A Forex Market Maker
The Forex market is growing rapidly and while Forex trading is not simple...
the_duty_of_a_forex_market_maker.htm

Forex For Absolute Dummies
The Forex market is growing rapidly and while Forex trading is not simple, it is easily...
forex_for_absolute_dummies.htm

Where To Get Forex Training
The Forex market is growing rapidly and while Forex trading is not...
where_to_get_forex_training.htm

Forex Enterprise A Full Review
The Forex market is growing rapidly and while Forex trading is...
forex_enterprise_a_full_review.htm

The Uses In Forex Trading Of Moving Averages And Macd
The Forex market is growing rapidly and while Forex trading is not simp...
the_uses_in_forex_trading_of_moving_averages_and_macd.htm

Major Advantages To Trading Forex
The Forex market is growing rapidly and wh...
major_advantages_to_trading_forex.htm

Forex Trading Making Money With Money
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learne...
forex_trading_making_money_with_money.htm

Five Reasons You Have To Start Forex Trading
The Forex market is growing rapidly and while Forex trading ...
five_reasons_you_have_to_start_forex_trading.htm

Example Of A Profitable Transaction In Forex
The Forex market is growing rapidly and while...
example_of_a_profitable_transaction_in_forex.htm

Explosive Profits 7 Reasons To Trade Forex
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
explosive_profits_7_reasons_to_trade_forex.htm

How To Learn Forex
The Forex market is growing rapidly and while Forex trading is not simple,...
how_to_learn_forex.htm

A Beginner S Guide To Forex
The Forex market is growing rapidly and while Forex trading is no...
a_beginner_s_guide_to_forex.htm

What Is Rollover Interest In The Forex Market
The Forex market is growing rapidly and while F...
what_is_rollover_interest_in_the_forex_market.htm

Learn Forex Trading
If you want to learn to trade Forex, it is paramount that t...
learn_forex_trading.htm

Forex And The Anatomy Of An Elliot Wave
The Forex market is growing rapidly and while Forex trading is not simple, it ...
forex_and_the_anatomy_of_an_elliot_wave.htm

Forex Glossary
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
forex_glossary.htm

How To Start Trading The Forex Market Part 5
The Forex market is growing rapidly and while F...
how_to_start_trading_the_forex_market_part_5.htm

Forex And Commodities Futures And Options What To Know Before You Trade
The Forex market is growing rapidly and while Forex trading is not simple, it is easily ...
forex_and_commodities_futures_and_options_what_to_know_before_you_trade.htm

So You Would Like To Trade Forex
You'd like to learn how to trade Forex and becoming a suc...
so_you_would_like_to_trade_forex.htm

Revealed Million Dollar Forex Investing Mistakes
The Forex market is growing rapidly and while Forex...
revealed_million_dollar_forex_investing_mistakes.htm

Starting Out With Forex Online Trading
Trading on the Forex, aka the foreign exchange, has never been easier than it is today and...
starting_out_with_forex_online_trading.htm

Sending Signals For Trading In Forex
The Forex market is growing rapidly and while Fore...
sending_signals_for_trading_in_forex.htm

Learn Forex
The Forex market is growing rapidly and while Forex trading is not simple, it is ...
learn_forex.htm

How To Start Trading The Forex Market Part 7
The Forex market is growing rapidly and while Forex trading is not simple, it is easily...
how_to_start_trading_the_forex_market_part_7.htm

Is Forex Trading Better Than Stocks
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
is_forex_trading_better_than_stocks.htm

Privacy
...
privacy.htm

Pivot Points In Forex Mapping Your Time Frame
The Forex market is growing rapidly and while Forex trading is not si...
pivot_points_in_forex_mapping_your_time_frame.htm

Snippetsrss
...
snippetsrss.htm

What Is Forex Trading All About
The Forex market, aka. the foreign exchange, is open 24 hours a day, during the busine...
what_is_forex_trading_all_about.htm

An Overview Of Forex Investing Strategies
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
an_overview_of_forex_investing_strategies.htm

Forex Signal Services
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
forex_signal_services.htm

Disclaimer
...
disclaimer.htm

Forex Case Study The Canadian Dollar
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
forex_case_study_the_canadian_dollar.htm

Online Forex Trading Is Quickly Becoming A Booming Business
The Forex market is growing rapidly and while Forex trading is not simple, it is easil...
online_forex_trading_is_quickly_becoming_a_booming_business.htm

Forex Trading Create Fantastic Wealth From Forex Trading
The Forex market is growing rapidly and while Forex trading is not simp...
forex_trading_create_fantastic_wealth_from_forex_trading.htm

Forex Rates
The Forex market is growing rapidly and while Forex tradin...
forex_rates.htm

Forex Expertadvisor Mechanical Trading Systems What Every Trader Should Know
The Forex market is growing rapidly and while Forex trading is not simple, it is easil...
forex_expertadvisor_mechanical_trading_systems_what_every_trader_should_know.htm

Forex Market Offers Opportunity And Information
The Forex market is growing rapidly and ...
forex_market_offers_opportunity_and_information.htm

Forex System 24 Hour Trading Transparent Currency Trading Market Always Open For Business
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
forex_system_24_hour_trading_transparent_currency_trading_market_always_open_for_business.htm

Forex Charting Lesson Chapter 1 Introduction
The Forex market is growing rapidly and while Forex trading is not simple, it is easily lea...
forex_charting_lesson_chapter_1_introduction.htm

The Miracle Of Forex
The Forex market is growing rapidly and while Forex t...
the_miracle_of_forex.htm

An Explanation Of Forex Trading
The Forex market is growing rapidly and while Forex trading ...
an_explanation_of_forex_trading.htm

A Comprehensive Forex Broker Register
The Forex market is growing rapidly and while Forex trading is not simple, it is easily learned....
a_comprehensive_forex_broker_register.htm

Day Trading Forex Market Behaviour
The Forex market is growing rapidly and while Forex tradin...
day_trading_forex_market_behaviour.htm

All About Forex What You Need To Know
The Forex market is growing rapidly and while Forex trading is not simp...
all_about_forex_what_you_need_to_know.htm

Forex Trading For The Little Guy
The Forex market is growing rapidly and while Forex trading is not simple, it is...
forex_trading_for_the_little_guy.htm

A Look At Forex Market Makers
The Forex market is growing rapidly and while For...
a_look_at_forex_market_makers.htm

Articles & Resources

Online Forex Trading is Quickly Becoming a Booming Business

Online Forex trading is more popular now that most everyone has access to a computer and internet. Unlike the stock exchange, the Forex does not...

Continue ...

Forex trading for the little guy

Since alot of these systems are dealing in Forex, we thought that we should provide a overview of what "Forex" is. The FX Market Structure The foreign exchange market is the generic term for the...

Continue ...

Click the Chart Below to Get What You Need ...

Three Important Forex Concepts For New Traders

As you enter the world of Forex you will find yourself learning and using many new concepts that you may not have used or heard before. Three of this important concepts that you must...

Continue ...