Forex Vs. Equities:

WHY TRADE Foreign Exchange?
ADVANTAGES OF CURRENCY TRADING
(compared to trading stocks or commodities)

• Greater leverage / Less $ required for meaningful results
• Limited currency pairs (vs. thousands of stocks) to consider
• Limited news or other factors to affect prices (vs. what affects stocks)
• Smoother continuous market with no gaps between daily trading session
• Largest financial market $3 trillion per day
• 24 hour market
• No one can corner the currency market:  The currency market is so vast and has so many participants that no  single entity, not even a central bank, can control the market  price for any extended period of time.
• Unlike the equity markets, in the 24-hour fore currency market there are no restrictions on short selling.This means an investor has equal potential to profit in a rising or     falling currency exchange rate in the foreign currency market.
• Not dependant on a bull market
• Free real-time market data available
• Low commissions—only narrow bid-ask spreads, typically 3 to 5 pips*
• Relatively simple and safe techniques to reduce risk and/or add to returns
   (e.g. carry trade – interest rate arbitrage to add to gains and reduce losses)
• Low-cost training and education readily available

* On FXCM's Dealing Desk platform, spreads are typically 3-5 pips on the majors, although these spreads may vary depending on market conditions.