Last update 2121.01.18
A very common question that investors consider is whether to trade forex or stocks 🤔. This article will explain some of the advantages of trading forex over stock markets, or commodities and indices. You will notice that forex offers a great opportunity and we have the right tools to help you achieve better results than stocks.
What you will learn ahead 🎓
- Comparing stocks vs forex trading
- How to trade forex efficiently
- What is the best: AI trading or forex signals
- How to use AI to trade forex and take advantage of the market
- What are the best forex brokers to trade?
🎯 Regardless of your experience level in trading, our mission is to help you invest efficiently in forex and improve your results. Get extra valuable forex trading ideas from leading finance experts on the trading Academy and our free forex Telegram channel.
💹 When trading forex, we suggest you consider long term results.
Comparing stocks vs forex trading 🔬
The main reasons why investors choose forex over stocks and other electronic markets is that the forex markets are open 24-hours a day continuously from Sunday evening in NYC, through Friday afternoon.
This availability enables traders from across the globe to choose the best time that suits their lifestyle or trading strategy to be active in the forex markets, on their own terms.
Besides, while the stock market may be better suited for longer-term investing in quality companies, the forex market can suit the needs of both long-term speculators, as well as short-term trading, due to a large amount of liquidity and a highly-efficient market.
Wiseinvest has comprehensive educational content and what we believe is the best Artificial Intelligence to support you in your forex investment strategy.
The forex market has significant daily trading volumes
The forex market is the largest market globally with over $6 trillion US dollars in average daily volume as of April 2019, according to the latest BIS Triennial Survey of Central Banks. To get a sense of how significant this is, the forex market alone is larger than the total of all stock exchanges combined worldwide.
If forex was a country, how big it would be?
If forex was a country, in 2019, the forex market would have placed as the 4th major economy of the world.
The investment market with the largest opening hours
Unlike stock exchanges, in forex you can trade any time of the day without interruption, using the same forex broker. This is possible because banks are always open somewhere in the world during the trading week.
Forex trades occur 24/5 and close in certain locations on a few exceptions such as national holidays. The forex market provides investors and traders with the freedom to invest when they prefer.
It can also allow you to focus on generating passive income without leaving your house if the right risk-management and trading strategies are applied.
Bigger returns on forex over other assets
Once you have margin accounts you can leverage your position, even with very small amounts of money. It means you can have greater opportunities for returns, while also amplifying your risk.
Especially for small amounts of risk capital like investing $50.00, forex can be more attractive than stocks, because you can open a bigger position than stock options, for instance.
Choosing forex over stocks can be cheaper too
As a very competitive market, with few barriers to new brokers, there are many options for forex brokerage services. You can find forex brokers for every kind of investor, with all types of fees and commissions. You can learn more by reading here.
Opening a forex broker account has no border restriction
Unlike the stock market, on forex, it is very easy to open an account from wherever you are in the world (with very few country restrictions). You can also try the AI trading system with a risk-free demo account. Try Oanda or FXCM to trade automated with the hands-free AI Trading system, or xtb.com to trade manually with AI forex signals.
The best way to trade forex
There are two ways to invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $100.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste them into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.
What is the performance of the AI in forex trading?
The Win Rate of our AI varies and can reach up to 95%. Our performance is based on an efficient frontier, which means that our model is profitable whenever the Win Rate is greater than 60%. Our strategies seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the application of high leverage.
We know that what matters in forex trading is the final result. Therefore, the investor needs to note that Win Rate is not always the best metric, as other signal providers disclose. For example, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative). Therefore, we focus on the return of 40% of APY and not just on Win Rate.
It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees. These factors can affect the AI performance. You can check our forex trading track record by clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI signals or an AI trading account and deposit just $100 in the broker. You can also test using a risk-free practice account with our AI trading system. However, to do efficient risk management in real accounts, we suggest you start at least $100. Notice that some forex brokers require different initial deposits to trade forex.
What is the trading strategy of our AI?
Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.
Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI is also able to create its own real-time index for each currency pair, which is used to identify what is the best direction and target.
About fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.
Takeaways in the comparison of forex vs stocks and other financial instruments
An important point to resolve when planning to become a trader is to decide where to invest. There are several financial instruments to consider, such as Stocks, Forex, Bonds, Treasury bills, Savings account, real estate, and so on.
Forex is the short way of saying “Foreign Exchange“. This means the global market for trading international currencies, also known as the FX market through a forex broker. These are the key features of forex:
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- With an average daily volume of $6 trillion, forex is the largest and most liquid financial market in the world.
- Due to the large volume, forex offers great opportunities to invest.
- Due to a wide variety of existing Forex brokers, Forex has become increasingly affordable.
- You can start trading forex from just $100 or with a risk-free practice account with a lot of forex brokers.
- It’s possible to invest automatically in forex with AI trading.
- Portfolio diversification. Forex is used as a hedging instrument by large hedge funds. This means that you can also consider forex trading as a protection for your investment portfolio.
So, are you thinking about investing? Think of forex as part of your capital allocation. With Wiseinvest‘s AI trading, you can invest automatically in forex from just $100.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.