What if we said Forex is easier to track than the NYSE, would that make sense? Well, it’s part of the reason why traders are flocking to the Forex markets. Let’s do the math. The New York Stock Exchange has upwards of 2-thousand stocks listed. They are very sensitive to factors that are beyond the control of even Superman. Rumors, bad PR, good PR, resignations, acquisitions of smaller companies and even the weather can have an impact on stock market movement. The Forex market is focused primarily on eight different currencies. That’s it. Sure, the currency pairs are influenced by many factors but when compared to the NYSE, eight is easier to follow than 2,000.
All Day, All Night
Thanks to different currency markets, Forex trades all day 24/6. When one market closes another one opens and there are also overlapping market sessions. What this means is you can trade well into the evening if that’s your deal. With the stock exchange, they close daily and on the weekends. Sure, everyone needs to take a break and hit the shower, have something to eat and grab a nap but with Forex you can just keep on going like the Energizer Bunny if you really wanted to.
No One In The Middle
Well, this one can be debated a little if you really wanted to. Stock brokers are the middlemen in the stock exchange. Forex does not have middlemen. Well, okay, you could possibly consider Forex brokers a middleman but when you compare the commissions or transaction fees of one over the other, Forex brokers come out on top with generally much smaller transaction fees. For a beginner, Forex is a lot easier to break into and learn.
You caught the part about something as minor as rumors and bad PR having a lot to do with influencing stock market returns, right? Well, Forex is far from bulletproof but it does not react to changes in quite the way stock markets do. One reason is that Forex includes large banks, central banks, investors, multinational corporations, governments and little guys like you and me. There is no way possible that a single entity can use its influence to alter the value of a currency in any major way.
Much More Fun
Oddly enough, it doesn’t hurt to toss in the Fun Factor when making this kind of comparison. While stock markets can be fun, Forex is a lot more fun, especially for beginners and those who are self-taught. It’s not really rocket science when you consider you are basing trades on how one currency makes out again another one over the course of a day. This is far more fun than dealing with shares of a company that can suddenly drop off the radar because of something on Facebook that went viral. Do you see what we’re saying here? Fun is important. In Forex, while it is still a business, it’s a fun business to be part of.