Many beginner traders wonder which market better to choose: Forex or stock market, futures, CFDs, binary options or any other market. Let's compare all of them and find the difference between them.

1. Why Forex is the best
market for traders

2. Forex vs Stocks

3. First of all, people wonder what is better, Forex or stocks.
The main difference between these two markets is the
number of trading assets. Forex market includes 4 major pairs
(EUR/USD, USD/JPY, GBP/USD, USD/CHF), 3 comdolls
(USD/CAD, AUD/USD, NZD/USD), cross currencies and exotic
pairs that can differ from broker to broker. Stock market contains
thousands of different stock and ETFs, each of them has its
economic past and future, so a stock trader has to perform
fundamental analysis perfectly.
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4. Trading platforms is the second thing.
Traders use quite complicated
platforms for shares trading. A newcomer may
need a plenty of time to master all features of
a trading platform. Moreover, a trader will pay
more, as the majority of this trading software
are paid. You’ll also need to subscribe to
websites newsletters about stocks (finviz,
briefing, etc). Forex analytics can be found for
free, that’s why it is one more plus, if you still
think what to choose, Forex or stocks.
2.

5. Trading conditions differ a lot
because of the high liquidity on
Forex. Thanks to this fact, we can work with
low margins and high leverages, while stocks
require much investments and offer 1:10
leverage mostly (for intraday trading).
Brokers usually reduce the leverage to 1:2
for overnight transferring. Anyway, you
should always control your risk and
remember about risking just 3% of your
overall funds for every trade.
3.

6. Trading hours are measured on
the stock market as sessions
are limited to the exchange hours (from
9:30am to 4pm Eastern Standard Time).
Forex works 24 hours per day from
Monday to Friday every week, so we
can trade even at night, if we want to. If
trading is your additional source of
income or a hobby, try using mid-term
strategies. They don’t require much time
or tie you to a certain period.
4.

7. All in all, Stock market is a good way to invest money and it
gives really great trading opportunities. But if you are
trader-beginner, you should better try trading on Forex as it is
easier, faster and require less money.

8. Forex vs CFDs

9. CFD (contract for difference) is a financial instrument that consists
of a fixed asset and a trader gets (or loses) money because of it’s
price changing. Different financial instruments can be fixed assets:
shares, stock indices or commodities (precious metals, oil, etc).
The main difference between a CFD contract and a stock is the
fact that the property rights are not given from seller to buyer while
the transaction. And it is logical that a CFD owner doesn’t have
the right of getting dividends, or participation in the shareholders’
meeting. They also differ from stocks by an easier trading platform
and more possibilities for trading.

10. The CFD trading is more
diverse than the Forex one. It
works with indices, energy, metals,
and many other things. You can
choose an asset depending on the
country and other economic factors.
On Forex we choose two currencies,
one against the other, and earn on
their growth or fall.
1.

11. These two
markets have
various natures. CFDs are
influenced by supply and
demand for an asset or a
trend change in some
business sector while
Forex is influenced by
global events and politics.
2.

12. Understanding of the
CFDs market can be not so
smooth for beginners, as it is
influenced by a plenty of factors that
you have to know. When we talk
about the quick start, learning CFD
trading may take much more time
than Forex trading.
3.

13. Forex vs Options

14. When we talk about the Forex vs
options battle, we have to remember
that trading binaries is very alike to the roulette
in casino. You have to predict whether an asset
will grow or fall. If your forecast is right, you
receive twice more money. But if you are
wrong, you lose them all.
You can use the same types of analysis that
you use on Forex, but losing rate may grow
drastically because of ‘roulette nature’ of
binaries themselves.
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15. Making money with binary options.
A trader has to be near his monitor
every minute and he much trade very actively.
This is very stressful and controlling emotions
will be too difficult for newcomers, all these
factors may lead to a total deposit loss. On
Forex, we can use pending orders or trading
robots to do less manual work and to earn
more. The binary options market doesn’t give
traders such an opportunity.
2.

16. It’s nearly impossible to predict the asset movement very
accurately (unlike we do it in the Forex trading). But making that
in certain time limits is senseless. The market is often flat and in
the process of consolidating. We should give the price a chance
to “breathe”. The most important thing is sticking to the rules of
your trading system and control risks. In the Forex trading, it can
be done easier than here.
Anyway, both of this markets work online and allow to start with
minimum capital. Still, Forex is more logical, more professional
and more profitable, of course!

17. Forex vs Futures

18. Guaranteed limited risk
on Forex. The first thing
about futures market is that you
can go to the negative level as
there are no margin calls. On
Forex, on the contrary, you won’t
lose more than you have on your
deposit. Forex trading platform
closes all positions for you if you
are tremendously losing.
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19. Liquidity. While Forex market can boast more than
$5 trillion per day, futures take only $30 billion. So,
their liquidity is strictly limited. If the market stands still, you
won’t be able to earn much. But in Forex trading we always
can get profit by switching a currency pair to another one.
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20. There are three types of margin
on the futures market: initial,
maintenance, daytrade. You can see the
maintenance margin for every asset on
the CME website. On Forex, there are no
limits for your margin, you can trade even
with $5! You need minimum $2000
capital for trading futures. Not every
trader can afford such deposits at the
very beginning.
3.

21. My overview is very brief and common, as I didn’t want to fill
my article with much unnecessary details. But the moral is
obvious. Forex trading is the easiest one and very profitable.
Moreover, it fits newbies the most, cause learning how to
trade on Forex is much easier than on other markets.

22. Thank you for
watching
the presentation!