Trading Forex versus Trading Stocks

Many investors are ditching stock trading for the forex market and with good reasons. For starters, forex trading takes the largest share of online trading. A whopping $2 billion worth of trading is done in one day. In financial markets, numbers speak for themselves.

Forex may be a better trading option because it is worth a lot more. The forex market is volatile and is therefore constantly moving. Anyone trading in foreign exchange has the potential to make lots of money.

Forex trading Singapore gives you a few reasons why trading in foreign exchange is better than trading in the stock exchange.

Forex Trades the Largest Volume

The forex market is the largest financial market on the planet and surpasses the stock exchange market by a huge margin. It is also the fastest growing trading market.

Compared to all other trading markets in the world, forex trading takes the biggest share of trading. Where stock trading takes about $10 billion in volume in a day, forex posts a gigantic $1.8 trillion. There is hardly any other market that comes close. This shows that a large number of investors are drawn more to forex trading than they are to stocks.

Currencies are Based on National Strength

The strength of the trading currency is based on the strength of the nation. This is unlike stocks which are based on the reports of a company. While all investment comes with some measure of risk, no strong currency has been known to collapse overnight.

Consequently, the possibility of making good money is very real on the forex market if one approaches it from a point of information. Stockmarkets are often affected by false or exaggeratedreports. This is unlikely to happen in the forex market.

Currencies can be Predicted

Currencies are not always stable, but as mentioned earlier, they do not collapse overnight. There are always warning signs over a period of time that can help an investor predict the direction a currency may be taking. Then they would be able to prepare in advance.

It is Rare for Multiple Currencies to Be Failing Simultaneously

Most of the time when one currency dips, the other one in the pair goes up. If the investor is on the right side, he or she will still make money. In fact, one nation’s financial disaster can mean a fortune for you.

The Forex Market is Open Every Day

The stock markethas a daily close to the market day. The forex market is open every day except on Saturday and has one weekly close. This means that trading is open just about every day and at any time. You can therefore trade in the evening after work or during your resting hours.

This flexibility is always an advantage in trading as you can trade from anywhere and at any time.


With the heightened interest in the foreign exchange market and so many investors joining up every day, experts are very generous with information. There are many platforms both local and international where new investors can get the information they need.

New investors can also liaise with brokers online and get assistance in their trading forays and increase their chances of hitting high profits.


The forex market has benefitted more from technology than any other trading market. The advantage of this for traders is that they can trade from anywhere and at any time. In fact, the rapid advancement in technology had played a huge role in the popularity it currently enjoys. In addition, technology makes the forex market easy to access as trading is done online.


Trading on the forex market come with a lot of advantages including the flexibility to trade anytime and from anywhere. Also, there is a lot of action and a huge community to interact with and learn from. While both stock and forex markets have their advantages, the forex market takes the pantry in terms of potential.

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