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FXFINPRO CAPITAL: What is better: Forex or stock market?


Among those who aspire to a million, very few of those who reach the goal. But among those who are not seeking, they are not at all.

Honore de Balzac

Today we will try to clarify the question, what is the best to trade: stocks, options and futures on the stock market or currency market Forex?

First of all, let us turn to history. The Forex market was formed in the 70th years of the 20th century. Therefore, the obvious is the fact that Forex is much younger than the stock market. This suggests that, the legislative base and international norms of regulating worse than stock. In turn, this makes the stock market more robust, but the profits that you can potentially get on Forex is incomparably greater. In this article we will not have to persuade a certain point of view, we will provide the obvious facts that will help you to form your own view, in this not easy matter.

What is Forex?

The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. The foreign exchange market determines the relative values of different currencies. Forex is common to use the term to refer to a mutual exchange, not the totality of foreign exchange transactions.[1]

The main features of the famous forex market.

    • Minimum investments for start.
    • Simplicity of registration documentation.
    • Low commissions.
    • Keeping overnight trading 5 days a week.
    • Providing free leverage.
    • The possibility of obtaining profits.
Now we turn to the concept of the stock market.

A stock market is the aggregation of buyers and sellers of stocks (shares); these are securities listed on a stock exchange as well as those only traded privately.[1]. The key word in this definition is the market. If this market, therefore, there are vendors that offer a product and customers. In the stock market the goods are backed securities. That is why the stock market can be called the equity market.

So, the main distinguishing features of the stock market are:
    • Trade in real assets (gold , cocoa, metal etc.).
    • A more advanced system of international law in regard to the stock market, compared to the Forex.
    • A wide range of investment instruments (stocks, bonds, investment shares, futures and options).
    • The vast diverse and detailed analytics of the market.
    • The possibility of hedging of portfolios.
    • A wide range of assets with fixed income (bonds).
    • Ability to obtain a more stable income.

Based on this information you can make the following conclusion: Stock Market and Forex - they are two completely different incarnation. They are not opposing substances, they just coexist.

Your choice depends on your preference and the final objectives of investing. FXFINPRO CAPITAL customers have a unique opportunity of unlimited trading, as the market Forex, and global stock markets. All you need - is to realize that it is more closer to you.

We are confident, thanks to a wide range of investment opportunities in our company, you will always find something useful and interesting. Trade with us and be sure that you are on the right path to the formation of its exceptional strategy of financial independence.

In order to make money for living, you have to work. But in order to get rich, it is necessary to come up with something else

A. Carr

[1] [2] Wikipedia, the free encyclopedia

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We would like to remind you that although trading of derivatives on margin may offer many benefits, it is important to note that it also carries a high level of risk. Please click here to read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.
The CIF license of PFX Financial Professionals Ltd has been suspended by the Cyprus Securities and Exchange Commission until the 24th of December 2016. Please click here