Stocks or Forex: How to really invest with a broker on the Internet and earn money?
Exchange and currency speculation has been known for a long time, but the Internet has become a revolutionary breakthrough in this area of activity. With the advent of the World Wide Web, trading in stocks or currencies in the Forex market has become available to everyone. Millions of people earn online trading in financial markets. Those who want to do this business are faced with the choice of a path: Stocks or Forex? The result of the choice depends on each person’s personal preferences, but to a large extent one has to take into account the minimum investment volumes and the features of the stock market and Forex.
Forex brokers or stock trading?
Companies are traded on stock exchanges, and currencies are traded on the OTC Forex market. In any case, only professional participants have access to the markets, which include forex brokers. Private traders conclude a contract with brokers, according to which intermediary companies carry out orders of clients on trade transactions. To ensure transactions, the client entrusts a trading deposit to the brokerage company.
In this regard, investing in Forex trading is easier. In the stock market, stocks of popular companies are expensive, and the minimum transaction size can be thousands of dollars. Forex brokers provide their clients with leverage, increasing the capabilities of traders by 100 times or more. Therefore, Forex traders can earn with initial capital from 100 to 1000 dollars. The stock market needs much larger amounts for an initial investment.
Difficulties in working in financial markets
Exchange traders must pay monthly rent of a trading terminal and receiving quotes. In the Forex market, brokers provide all this for free. Quality analytics on exchange-traded instruments also cost money, and Forex brokers publish free reviews of foreign exchange markets daily and even provide trading signals to their clients. It is more difficult to work with stocks because of sharp changes in prices. Currencies usually move within small limits, and securities can rise or fall in price by tens of percent.
Plus exchange trading in a huge selection of financial instruments. You can always find stocks that are steadily rising in price, falling or moving in the corridor. The foreign exchange market is tied to the US dollar. The most liquid currency pairs are Eurodollar, dollar-yen, pound-dollar and some others. However, the good thing is that the difference in the purchase and sale prices of currencies is small, and for each transaction with shares you need to pay a decent commission. So for new investors it is better to try on the Forex market, and for exchange trading more experience is required.
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