Forex Verses Stock
There are two main differences between Forex and stock market that makes these two markets distinguish in their own way. One of the two differences is the trading hours. In Forex market is open 24 hours a day. The trader can work all the day in market keeping an eye on the market events and respond accordingly as needed. The market is open from Sunday evening till Friday night.
The second difference is that of the Commission. Online trading platform and growing competition has brought a sizeable reduction in bid-off spread. Although reduction of prices by the brokers in the stock market didn’t affect much, it is still considered that Forex is still in the market with cheapest commission rates as compared to other markets.
Also unlike in the stock market where every client have the same profit as all others investors Forex market have different levels of trades thus profit and investment varies depending upon the level.
Trading in both is done using the same mechanism in Forex, Forex account is used in buying and selling while in Stock market, stock exchange account is used for trading. More or les both function in same way.
In Forex there are many influences on the value of currencies. Forex market is simply a demand and supply market as demand raises the value of currency rises as demand falls the price also falls.
It is also notable that Forex is much more money loss resistant then the stock, there is very less chance of loosing money one can even earn profit from fall of the Forex.