FOREX or stock market?

Shares, investment companies, mutual funds, dividends, IPO - people in modern society often faced with all these terms. Many are involved with the opportunity to buy a small piece of a company (share) and cash in on the growth of its value. Of particular interest is the population in the stock market was caused by the heavy advertising of so-called "popular IPO» Rosneft, when all those who wish to buy a particle of national wealth. But taking an important decision to invest their funds, many did not think about possible alternatives to the stock market. This is the currency market FOREX, which provides an excellent opportunity to earn even in a crisis.

Rules of the game

Foreign Exchange Market stands out of the stock so that the rules on it are known from the beginning. When people buy stocks, they impose the view that they take a long-term involvement in the economy. For example, after seeing advertisements Rosneft's IPO, the public had the impression that this is a very reliable company, whose value will only grow. As a result, securities of this issuer became cheaper and people who bought them, no money earned. The crisis also showed that even the largest capitalization companies may fall at times for very short periods of time, which makes long-term investments are absolutely meaningless. In FOREX, such errors can not occur, making it more intuitive to understand.

In the stock market there are periods of calm, but there are times of strong motions. Everything happens at once, and the traders at this point there is little choice: those who adhere to a conservative strategy, simply have to leave the market at a time of heightened volatility, and those who are used to speculate on the contrary, have few opportunities to earn money when the market is calm. FOREX, thanks to the leverage (1:100), allows you to adjust the level of risk in any market behavior: even in a completely quiet market can make a fortune, if properly calculate the level of risk.

The predictability of the market

It is important to understand that the stock market is much more difficult to predict. If the major events that influence the currency market (the publication of macroeconomic data, the speech of the Central Bank, etc.) tend to occur on schedule, in the case of stock market unpredictability is much more critical. Output of some corporate news could bring down the share prices are absolutely surprising. The Russian stock market in this respect particularly vulnerable. Many investors remember with horror the case with the oil company Yukos when the trial began against the leadership of the company, its shares became cheaper by 20% per day. What was the people who bought these securities did not have time to sell!

In addition, it is worth noting that the turnover of the currency market FOREX is estimated trillions of dollars - on this indicator, it can not be compared even remotely with any stock exchange. Accordingly, in the case of the FOREX market you do not risk becoming a victim of market makers can trade efficiently, without having insider information. In FOREX, it may not be situations where there is no buyer for your product, and the second and third echelons of the stock market - it is quite common.

Time in the market

Another argument in favor of the foreign exchange market may be able to trade from Monday to Friday 24 hours a day. Working on the stock market has to adjust to the time of the site where bargain. For example, the trading session on the largest Russian stock exchange MICEX begins at 10:30 and ends at 18:45. Not everyone can afford to monitor the bids during the day, and the ability to trade at home after work, respectively, are not. In FOREX, you can trade successfully and after work, making it much more suitable for most people.

Price question

A significant advantage of the FOREX market is its accessibility - the minimum deposit is $ 200! The stock market reputable companies set the entry threshold at 1,000 dollars or more, which complicates the process of exploring the market for newcomers. This is due to the fact that trade with a smaller sum is almost impossible to market a significant number of lots worth more than $ 50. Many remember the days when $ 1,000 could not buy even one (!) Share of Sberbank (it cost about 40 rubles). In FOREX trading can be equally effective in any amounts - many traders make tens of thousands of dollars, from deposit of $ 5,000, observing the rules of money management.

We hope that this information will help you choose the right way to invest your money, and you will appreciate the opportunities in the market FOREX!

How to try without risking your own money?

Especially for beginners, we offer a demo account, which fully corresponds to a real account, with the only difference is that you do not need to make any money. Demo Account - the perfect way to see it for themselves, to understand the simple rules of trade and learn to earn. This is the case when it is better to try once myself a few times to hear from others.