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Advantage of Forex over Stock and Commodity Market


Hi Traders

When one begins to discuss the advantages of investment in the Foreign Currency Exchange Market (Forex) over the Stock or Commodity Market, it is quite easy to sound like a cheerleader and with the same kind of bias. The Forex market offers so many advantages that it is not hard to understand its popularity.
The Forex Market operates 24 hours a day. It is a truly world wide market, and when the sun goes down in one trading center, it is coming up in another. The Forex market, although it has its trends and cycles, is not locked in the Bear vs. the Bull market mentality of the Stock Exchange. Since all Forex trades involve the exchange of one currency for another, one currency's hard times opens the door for a profit in another currency. The market is not adversely affected by rising interest rates. When a nation raises rates, generally the currency is strengthened, while rising interest rates tends to depress the stock market.
The combined number of different stock issues on the NYSE and NASDAQ exchanges totals 8000. That is a lot of stocks and it is time consuming to keep up with even a portion of them. There are four major currencies, and only about 34 second tier currencies, to consider in the Forex. Brokerage firms do not stand between you and profit in the Forex. Not only are the brokerage and commission fees almost non-existent, but analysts in the Forex tend to actually analyze in the currency market and not dictate or control the rise and fall of the market.
When the two markets are compared, the Forex certainly looks like the better investment choice.

Regards
delijaworld
I have never met anyone that made any money in the forex and have heard horror stories about how crooked it is
Liquid 24hrs does sound interesting...But I don't see how it could be any better than the mini S&P or Russell 2k mini.
Bruce,

As forex is not centralized therein lies the irony you will notice price difference across the brokers. During volatile period i have seen it differ by almost 70 pips (thats $700 if you are trading eur/usd). I have known folks who have made money especially not trading the news as that's where most of the people loose unless you know what you are doing.

WSJ.