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Forex vs Equities and Futures
Forex vs Equities and Futures
| |
FOREX |
EQUITIES |
| Liquidity (volume generated) |
Almost 3 Trilion dolars of daily volume |
Around 200 bilions dolars |
| Trading Hours |
24 hr market, 5.1/2 days a week |
Monday through Friday from 8:30 EST to 5:00 EST |
| Profit Potential |
In both, falling and raising markets |
Most investors profit only from raising markets |
| Transaction Costs |
Tight spreads |
High commissions and transactions fees |
| Buying Power |
Leverage up to 100:1 |
Leverage from 2:1 to 4:1 |
| Specialization |
7 Major currency pairs |
More than 400 strocks to choose from |
| |
FOREX |
FUTURES |
| Liquidity (volume generated) |
Almost 3 Trilion dolars of daily volume |
Around 400 bilions dolars |
| Transaction Costs |
Tight spreads |
High commissions and transactions fees |
| Leverage |
Fixed rate of leverage |
Different levels of leverage on overnight posisitons and day time positions |
| Trades execution |
Instantaneous execution |
Inconsistent execution |
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