Beginner’s Guide to Online Forex Trading – Chapter 15: Forex versus Stocks

Beginner’s Guide to Online Forex Trading – Chapter 15: Forex versus Stocks

Forex Market – Round-the-clock service:

The US, Asian and European Forex markets are located in different time zones. This makes the foreign exchange a place of round-the-clock activity. Brokers have fine-tuned their functions in accordance to this and business hours for many begin on Sundays at 2 P.M EST and end on Fridays at 4 P.M EST. Customers can work out their trade plans accordingly as round-the-clock customer services would be available.

No brokerage needed:

Forex trading is cost-effective when compared to stocks or commodity markets as transactions are transparent and speedy. There is no need for you to pay brokerage or any other fee for either online or telephonic transactions in currency trade. So, how do brokers get commission for their services, you might ask. Their interests are taken care by bid or ask prices.

Prompt deliveries:

During normal market conditions, your orders are promptly implemented. Of course, you are sure of firm prices on every order under such conditions. Your click clinches your deal. It is really great to get off real-time streaming prices directly. What’s more, you’d find that when you place your order, there absolutely no difference in the prices displayed on the screen with your execution price. However, it would be best to remember that a majority of the brokers offer guarantee for stop, limit and entry orders only when the market conditions are stable. Usually your fills are promptly made, but there could be some impediments in execution of orders if the market is going through an odd phase of volatility.

No curbs on short-selling:

The stock market’s Uptick rule curbing short-selling does not apply to the Forex currency market. Because of this, the market offers you quite a few opportunities irrespective of the market movements or whether you are holding long or short. The market is not structured since you are all the time engaged in buying or selling one currency or the other. This invariably provides you the facility to enter the market no matter what direction it might take.