Why Trade Forex: Forex vs Stocks Market

Forex vs Stocks. Google vs Yahoo. Lambo vs Chrysler. 

Ultimately, the answers all comes down to the features that are important to you. 

Stocks and Forex Trading are both viable paths to financial success, but before you start trading either, it is important to find out which is best suited for your trading strategy and risk appetite. 

Deciding which of these markets to trade does not have to be complicated, and many factors can be considered in order to make the best choice. 

Take a look at our comparison – Forex vs stocks – and explore the key differences between the two markets.

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Comparison: Forex vs Stocks Market

1. Liquidity

Forex is the most liquid market in the world with an average daily trading volume exceeding $5 trillion. The FX market can absorb trading volume and transaction sizes that dwarf the capacity of any other market.

Let’s use the stock markets for comparison.

All the world’s combined stock markets don’t even come close to the daily trading volume in the Forex markets. The largest stock market, New York Stock Exchange, (only) trades an average daily volume of $22.4 billion.


I don’t know about you but I would rather get a piece of the $5 trillion!

2. Market Hours

The Forex market never sleeps! The FX market is open 24 hours a day and 5 days a week, only closing down during the weekend. 

This is convenient for those who don’t want to quit their full-time job and dedicate their life to trading, because you can choose when you want to trade: morning, night, during breakfast, or whilst waiting on your girlfriend to come home from her 3rd ‘business trip’ this week.

The stock market, on the other hand, is limited to an exchange’s opening hours. For example, in the U.S., most stock exchanges open at 9:30 am EST and close at 4:00 pm EST.

3. Simplicity

There are approximately 2,800+ stocks listed on the New York Stock exchange. Another 3,300+ are listed on the NASDAQ.

Which one will you pick? Got the time to stay on top of so many companies?
And yes, you may argue that with Forex, there are hundreds of currencies traded, but the majority of market players trade the seven major pairs.

And 7 major pairs are much easier to keep an eye on than thousands of stocks, don’t you think? (Especially when you have the HowToTrade academy by your side for every step of the way)

4. Capital Required

Getting started as a Forex trader doesn’t necessarily cost a ton of money, especially if compared to trading stocks or futures.

Online Forex brokers offer ‘mini’ and ‘micro’ trading accounts, some with a minimum account deposit of just $25.

Now, we are NOT saying you should open an account with the bare minimum, but it does make Forex trading much more accessible to the individuals who want to test the waters before diving in too deep!

5. Free Demo Account

Most online Forex brokers offer free demo accounts to practice trading before risking your hard-earned money.

Free demo accounts are valuable resources for all beginner traders that want to sharpen up their trading skills and processes with pretend money and ZERO risk.

Like all things in life, you must learn to crawl before you can walk. And Forex trading is no different.

Again, this is something that is unheard of in the stocks market.

forex vs stocks

Now, we may be biased but the Forex vs Stocks Scorecard isn’t… If you ask me, Forex markets seem unbeatable! 

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