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Why is Currency Trading Superior to Stocks?
Currency trading offers zero commissions, so costs are limited to tight bid-ask spreads. 24-hour live market access means you can make trades when you want to. Traders can succeed in falling markets, just as easily as rising markets. Plus, the market is ideal for using technical analysis.
With stocks, you lose your capital to:
-Commissions
-Exchange Fees
-Spreads
In the Forex Market the Cost is Limited to the Spread
In the Forex market, you pay no commissions and no exchange fees because you deal directly with the market maker. This cuts out both ticket costs and expensive brokerage fees. There is still a small cost when you open the trade, but that cost is shown in the bid/ask spread, which is also present in all markets including futures or equities trading. This cost is covered when/if the market moves just a few points(pips) in your direction. Combined with the tight, consistent, and fully transparent spread, currency trading costs can be lower than any other market.
Active stock traders often see substantial amounts of their gross profit go to brokers in the form of commissions, and the exchanges in the form of exchange fees. This cuts into their gross profits and by the time all is said and done, their trade doesn't look so great. With the Forex, you are able to keep your capital for yourself.
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