Advantages of Trading Forex Over Stocks.

Here are more of the advantages of trading forex over stocks.

Minimal Market Manipulation

How many times have you heard that “Fund A” was selling “X” or buying “Z”?  The stock market is very susceptible to large fund buying and selling.

With currency trading, the massive size of the forex market makes the likelihood of anyone fund or bank controlling a particular currency tiny.

The FX market is sufficiently liquid.  Because of this significant manipulation by any single entity is all but impossible.  Especially during active trading hours for the major currencies.

Banks, hedge funds, governments, retail currency conversion houses, and large net worth individuals are just some of the participants in the spot currency markets.

In the spot currency markets, liquidity is unprecedented.

Analysts and brokerage firms are less likely to influence the market

Have you watched TV lately?

Heard about a certain Internet stock and an analyst of a prestigious brokerage firm accused of keeping its recommendations, such as “buy,” when the stock was rapidly declining?

It is the nature of these relationships. No matter what the government does to discourage this type of activity, it will continue.  So we have not heard the last of it.

IPOs are big business for both the companies going public and the brokerage houses.

Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients. That catch-22 will never disappear.

Foreign exchange, as the prime market, generates billions in revenue for the world’s banks.  It is a necessity of the global markets.

Analysts in foreign exchange have very little effect on exchange rates; they just analyze the forex market.

Learn to Day Trade 

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