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Is forex trading more profitable than stock trading?


Salman1

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To answer this let’s consider, leverage and margin requirement for both. Leverage is higher in FX, in the US it is 50–1 in the UK and Europe it as high as 1000–1. These leverage ratios make FX appear to be very profitable as you can make money on a large amount of burrowed liquidity. This high leverage and implied volatility means that you will still need a lot of capital to truly take advantage of the leverage. In stocks there is no leverage so you need the cash upfront, this creates a barrier to entry. If you wished to buy Boeing stock you can buy 1 share for a little over $100, if you wanted 1000 shares then you need $100,000. You can however trade stock CFD’s but these are rare with many retail brokers. Stocks are more volatile so the profit potential is higher. As an example I purchased Cosan shares (CZZ) at $2.83, they are now worth over $5 a share and that was under 3 months, so a 100% return in under 3 months. This is not really feasible in FX, volatility is just not the same but none the less this can be done if you trade Option derivatives for example.

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FXdirects is an experienced and award winning trading broker in Forex market. For the retail Forex traders they offer interesting facilities. I love their instant cash back service. With my previous brokers I didn’t get proper cash back facility and thus I changed them. Now I am fully comfortable in my trading career with this liquid broker. Now I can get my cash back on the same day I applied.

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It's extremely hard to be profitable in Forex. It may look simple from outside yet the person who do it knows all the weight and inconvenience that he gets in for doing it productively. I am fortunate that despite the fact that I had no related knowledge or learning I was as yet ready to pull off everything with XeroMarkets on the grounds that they have astounding instruction program that I take after and results are quite recently mind blowing. They also do not have any hidden charges. 

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I also agree that Forex trading is more profitable then the stock business. But earning money from Forex market even not so easy. It takes too time to become successful. You have to work hard and acquire good trading knowledge. Forex4you is the complete trading broker who provides necessary trading knowledge through their free educational programs. They offer – webinar and seminar programs, video tutorials, Forex glossary and demo trading accounts.

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