Last update 2020.08.05
A very common question that investors consider is whether to trade forex over stocks. This article will explore what some of the advantages are trading forex over stock markets, or commodities and indices.
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 NY, 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.
In addition, 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 the 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 closes 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 of 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 open a demo account to practice. Try oanda.com to trade automated with AI Trading system, or xtb.com or FXCM.com to trade with AI 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.
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-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, in order to match the performance of the signal as close as possible.
Each AI 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)
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.
- Forex is the biggest market globally, and a reason to choose forex over stocks.
- You can trade 24/5 on forex, in other markets such as stocks you cannot.
- The forex market has no borders and is decentralized.
- You can invest a very small amount of money and potentially see meaningful returns, although leverage also increases risk of loss.
Wiseinvest can help you to get into the forex market, with professionals here to support you. We also can do most of your work with Wise trades, using state-of-the-art Artificial Intelligence to monitor the market and calculate positions sizes.
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. The forex broker Fxcm warns that 69.66% 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.