It is very important to decide where you will trade before opening an account. The eternal debate and choice between what to choose, forex or the stock exchange, will probably never end. However, you must and can make your choice based on your goals. One thing can be said, changing the market is not the best tactic. Choose the market that you consider safer and more profitable. You must feel comfortable and confident as a user, as well as understand the intricacies of the market.

This is exactly what this article on the site will discuss. We will consider the advantages of both the Forex market and the Stock Exchange platform.

What is Forex and the stock market?

The forex market and the stock market have similarities, but they are two different markets that have nothing to do with each other. The forex market trades world currencies, while the stock market trades securities of the world's largest companies. It follows from this that the forex market allows you to make money on the difference in the exchange rate of any currency, and the stock exchange provides the opportunity to make money on the difference between the purchase and sale of shares, futures, bonds and other securities.

If you still think there is no difference, then note that on the stock exchange you can only profit from a rise in the price of securities, while on forex you can profit from both a rise in price and a fall.

Stock market dates back to the times of the merchants; already at that time, bills of exchange were popular, as well as other papers that had value. After a while, auctions began to be organized in Europe, which were famous in Belgium and France. This is where trading on the stock exchange actually began. The stock exchange product is securities itself. There are currently 200 stock exchanges in the world, the largest are: 13 centers in the USA, 9 in Japan, 22 in England, 8 centers in France, 7 in Germany.

The three largest stock exchanges are located in London, New York and one more in Tokyo. To give you an idea of ​​their scale, the total capital is more than $28 trillion.

Forex (FOReign EXchange), can be found back in the days of Babylon, and then among medieval money changers in Italy. So they made their fortune on how the market value of any coin changed. Today the daily turnover reaches 3 trillion dollars. The leaders of the modern market are companies such as: Nord FX, Alpari, Pantheon Finance, FBS Markets Inc and others. The main and only source of income is the commission from the transaction. Brokers provide access to the market, and they benefit from attracting new people to the sites. That is why they care so much about your success and are always eager to help you with full readiness, all because your success is equal to their profit.

No matter how different one market is from the other, you will always be faced with the same principle, namely, sell as expensive as possible and buy cheaper. However, it is worth considering that Forex trading is carried out exclusively in currency pairs, each trader can afford to choose any of the currencies that are included in the pair, you can always make money on this, even if the pairs go down.

Difference between stock exchange and forex

Find a clear answer to the question “Which is better - the stock market or Forex?” pretty hard.

Each of us has different goals, plans and strategies. Some are ready to take risks for the sake of a good and quick profit, while others, on the contrary, will agree to wait for profit, as long as it is a safe and risk-free way to earn money. If it seems to you that it is difficult to determine what you need, then you are mistaken; finding the answer to this question is much easier. Imagine a real situation with risks and losses, and think about how much you are willing to lose. By analyzing such situations, you will come to the conclusion of what type of person you are, risky or not.

	Stock market
Minimum deposit from 1$	Minimum deposit from 30 thousand rubles.
You pay your taxes yourself	Your taxes are paid by the broker
Open an account in a couple of minutes	Account opening within two weeks
No trading volume	Trading volume for any time
There's no escape from the spread	Spread savings through limit orders
No order book	There is a book of orders
Execution in a couple of seconds	Execution within a second
Leverage from 1:100 to 1:1000	Leverage from 1:20
Currency trading available	A thousand different instruments

Forex Stock market Minimum deposit from 1$ Minimum deposit from 30 thousand rubles. You pay your taxes yourself Your taxes are paid by the broker Opening an account in a couple of minutes Opening an account within two weeks There is no volume of trading operations Trading volume for any time There is no escape from the spread Saving the spread through limit orders No order book There is a book book Execution in a couple of seconds Execution in within a second Leverage from 1:100 to 1:1000 Leverage from 1:20 Currency trading available Thousands of different instruments

Ultimately, we want to tell you that without taking into account the lengthy process of opening an account, trading on the stock exchange can provide you with more opportunities to earn money. However, we would like to note that the stock exchange will be a more suitable platform for an experienced trader who will not have difficulty understanding the software and using the tools to the maximum. For beginners, the best option would be Forex trading.

Time on the market and issue price

If you work on forex, then trading can be carried out there on weekdays 24 hours a day, which cannot be said about the stock market. Not many people know how the stock exchange works, and its operating hours are limited. You will need to adapt to their schedule. Each transaction has a limited time, which in most cases is not convenient. You can trade on Forex at any time convenient for you.

If we discuss the topic of price, then the stock market, namely large companies, set the initial payment from $1000, beginners will not meet this level. This amount is set because each lot of securities costs more than $50. At one time, it was impossible to buy at least one share of Sberbank for the same thousand dollars; one share had a price of about $700. Forex trading is equally profitable with turnovers of different amounts. Quite often, traders manage to earn a lot of money starting with a deposit of $5 thousand.

How to start earning money and which market to choose?

So, it’s time to sum up this topic. If you are thinking of starting trading in the stock market or forex for the main income, then you must have good mathematical abilities and be able to analyze well, an analytical mind would also not hurt you, and you also need skills and relevant knowledge, mixed with experience, attentiveness and concentration. It goes without saying that this will take up a lot of your time, but it’s still much better than storing money under the mattress. Would you say it's safer? And we will tell you that you are getting poorer every day, because every day of their inaction reduces their value.

• The stock market is expensive, but the chances of earning money are greater, you have a long way to go and minimal risks.
• The forex currency market is accessible to everyone, there are many training courses, and each term has its own risks.

You are probably already thinking about what to do, and the site will give you one piece of advice, don’t wait for advice, act. Earning money is good, however, for it to be of any use, it needs to be invested in a profitable business. Prepare yourself mentally for losses in advance, because statistics show only one thing: everyone burns out in the beginning, but this is experience.

When the conversation turns to trading on the stock exchange, the first question that sets the general atmosphere of the further conversation is: “Which exchange are we talking about?”

Indeed, today there are two main exchanges that provide not only different trading facilities, but also differ in their general “atmosphere”. These exchanges are stock and foreign exchange.

Which exchange should you prefer? Let's try to figure out this difficult issue together.

A little theory

When answering the question “stock market or forex?”, you must first find out what these two phenomena of modern economics are. To do this, we invite you to briefly familiarize yourself with each of them.

Forex is a currency exchange, i.e. trade currencies on it. These can be either the familiar euros and dollars, or more exotic Japanese yens and other banknotes.

The essence of Forex trading is to select the optimal exchange rate, which fluctuates quite noticeably throughout the day. You may have noticed that some banks update data on exchange rates at least once a day, but in Forex this data is updated almost every second.

Naturally, the differences in rates are minimal, however, if you invest significant amounts in transactions, it is quite easy to get a profit comparable to the funds invested in the transaction.

The situation is also simplified by the fact that in Forex there are no so-called buying and selling rates; instead, there is only one rate, which allows you to maximize profits from currency transactions.

The stock market works differently. Instead of banknotes, they trade securities - stocks, bonds, etc.

In addition to the fact that in this market you can become a completely successful investor by purchasing shares of a successful company, it also provides the opportunity to earn money similar to Forex - security rates fluctuate no less than currency rates, however, the stock market is much more predictable.

In particular, the stock price does not depend on the general market atmosphere, but on the actions of the company that issued these securities.

Accordingly, by monitoring news reports, as well as gaining access to insider information, you will be able to more or less accurately predict the direction of movement of the price of the security you are interested in, using this information for your own purposes.

Advantages of Forex

To the question “stock market or forex?” Having gained some clarity, you need not only to understand the basic principles of the functioning of these markets, but also to have an understanding of their advantages over each other.

Below we have tried to give you a number of positive aspects that make the Forex currency market more attractive for some traders.

1. Entry threshold. This wording hides the determining amount, with which you can become participants in the exchange. The threshold for entry into Forex is significantly lower than that of the stock market.

While you need to have tens of thousands of dollars to start working on the stock exchange, trading forex can generate income with almost any investment. Naturally, if you want to achieve a tangible result, you will have to invest several thousand dollars and carry out a series of successful operations, however, even under such circumstances, this amount remains lower than what the stock market will require from you;

2. Relative predictability. The situation on the Forex market is less unpredictable than the one that prevails on the stock market. If you don't have inside information, some potentially successful stock trades can quickly bankrupt you, as happens in every financial crisis.

In addition, every company that releases new products from time to time may find itself at an extreme disadvantage if the next product that was promised a great future suddenly turns out to be unclaimed.

Benefits of the stock market

In order to convince you that the stock market is by no means the worst place for investment and speculation, we present several of its positive qualities that Forex does not have.

Better information for traders. Since the stock market emerged much earlier than Forex, today there is a huge amount of literature designed to make the situation on the stock market more predictable and, accordingly, profitable.

Exchange interest. Unlike Forex, the stock market is interested in your winnings. More precisely, brokers are interested in it, and they “feed” on interest from your transactions. The more successful deals you make, the better their business will be. This circumstance makes trading on the stock market very, very attractive.

Openness. By trading on the stock market, you are able to obtain much more information about its condition; in particular, trend resistance levels are available to you, awareness of which makes your work potentially more profitable.

This is where we will actually end. In fact, it is impossible to unequivocally answer the question of which is better - the stock market or forex.

Both of these exchanges have their advantages and, of course, disadvantages, so choosing a trading platform largely depends on which market trading strategy best suits your skills, habits and character. In any case, we wish you good luck.

Good afternoon, dear blog readers. Beginners who decide to try their hand at trading (no matter what), namely trading, face a logical question. Which is better: stock exchange or Forex? If you don't know what to choose, then this article is for you. You will learn all the pros and cons of the Forex currency market and the advantages and disadvantages of trading on the stock exchange.

First, a little theory.

The foreign exchange market, or as it is also called the Forex market, is intended primarily for the purchase of currencies between legal organizations (banks, large companies, etc.) - initially, currencies were traded between them. Transactions were made solely for the needs of the companies. And there was no talk of any speculation. Then private players began to join the market, hoping to grab a jackpot due to the constant change in quotes. And if demand appeared, then supply soon began to appear. I mean all kinds of brokerage houses that provide traders with access to the foreign exchange market. By the way, the minimum transaction volume on the Forex market is 1 lot. In money terms, that's $100,000.

Let's summarize. Where should a beginner start: choose the Forex market or go straight to trading the stock market?

I had (and still have) trading experience in both places. Therefore, I can advise the following.

If you are completely new (or so), but want to try your hand, then the Forex market is suitable for you. Throw in 50-100 bucks and go. I also immediately advise you to mentally say goodbye to them. With a minimum of effort on your part, you can start trading within an hour. Gradually during the trading process you will understand whether you will do it or not. Perhaps this is just your temporary hobby.

You can, of course, try your hand at trading with virtual money without a demo account. But I’ll say right away that a demo account is only suitable for learning the basics and rules of trading. As practice shows, almost everyone always wins on demo, but as soon as they switch to real trading, the entire deposit is lost almost immediately.

What is this connected with? First of all, with psychology. When trading with real money, you feel calm and confident. But as soon as a real account comes into play, with hard-earned money, you will feel completely different. Therefore, if you want to get real results, you need to trade on a real account, albeit with small amounts. Many more Forex brokers commit a little cheating on their part in terms of quotes.

But if you are determined to make money or are looking for a profitable investment of your funds, then the stock market is your choice. By choosing it, you rely on long-term cooperation. You can know for sure that your money will not disappear, build many strategies and combinations for obtaining additional passive and active income.

I hope everyone has found the answer to where to start trading: the Forex market or the stock exchange.

Happy investment!!!

Have you decided to invest in stocks and bonds? What do you know about the stock market? How does it work, what level of profit and risk does it offer? What is the Forex currency market? Today in the article we look at each of them, evaluate how they are similar, how they differ, and what they offer investors.

Good afternoon, dear blog readers!
This article was written in December 2014, today it has lost its relevance and has been deleted into the archive!

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Stock market- this is one of the components of the global financial market, where securities are traded in order to make a profit.

The origins of the stock market go back to the times of the merchants; even then, bills of exchange, mortgages and other securities endowed with value were actively used for trading activities. A little later, auctions began to be organized in Europe, the most famous in Antwerp and Lyon, where all transactions were only with securities. They laid the foundation of the modern stock market. Bonds, shares and all documents that belong to the category of securities are the direct subject of sale and purchase, that is, stock market goods.

Access to the stock market is provided stock exchanges. In principle, they don’t care how successful you are in your transactions, since their income consists of:

• entrance fee;
• the trader’s fees for the place, that is, for the very opportunity to trade;
• deduction of commission fees for the provision of various services (information, legal consultations);
• fees to cover expenses or form a reserve specified by the rules.

Stock exchanges are concentrated in major world centers. There are about 200 of them in total, in particular:

• 13 in the USA;
• 9 in Japan;
• 22 in England;
• 8 in France;
• 7 in Germany.

The most serious ones are in New York, Tokyo, and London. To appreciate their scale, it is enough just to give figures on the volume of capital - it is almost 16 trillion. dollars NYSE Euronext (New York), 12 trillion. dollars LSE (London).

Now about the Forex currency market.

Forex (full name FOReign EXchange) is a market where there is a free exchange of currencies at free prices. In other words, currency speculation through dealing centers or commercial banks.

If we talk about the origins of the Forex market, they can be found in ancient Babylon and Egypt. More “serious” relationships, which were as close as possible to modern times, can be seen among the Italian medieval money changers. They made money from changes in the market value of a particular coin. And the modern Forex market trades precisely the currencies of different countries. The total number of constantly appearing pairs is about 120. Considering its mobility, constant access to goods in unlimited quantities, constant development, it is not surprising that its turnover is several times higher than the capital of many stock exchanges, and the total turnover of all of them combined. Today, the daily turnover alone ranges from 3 trillion. dollars.

Brokers provide access to the foreign exchange market. Leadership in the modern market belongs to such large companies as Alpari, ForexTrend, Pantheon Finance, Nord FX, FBS Markets Inc. Their only source of income is commission from successful transactions of traders. It is beneficial for brokers to attract, lure or develop a successful manager on their site, so they are ready to train, provide visual materials, conduct online consultations 24 hours a day, and all this is free. You feel the difference: when only you need your success, and when the intermediary is no less interested in it.

Which is better - the stock market or Forex?

It is difficult to give a definite answer to this question. Everyone pursues their own goals: some require high reliability and are ready to wait for a profit, while others strive to get everything now. It is not difficult to determine what is more profitable for you. It is for this purpose that I will provide a brief comparison of the most significant conditions for successful trading.

Liquidity

In this regard, Forex undoubtedly has the advantage. Currency is always abundant and liquid. You can buy or sell any type in the required quantity on this market. At the same time, shares purchased on the stock market cannot always be sold high or bought low at the right time. To make a real profit you often have to wait quite a long time. In addition, shares may completely depreciate and, accordingly, lead to losses.

Stability

The stock market is more stable. The value of shares can be characterized by sharp ups and downs, and even complete depreciation. But this happens over a longer period of time. Therefore, with a competent approach and a qualitative analysis of the company’s financial and personnel records, it is quite possible to predict in advance the necessary actions of your own. If we compare the Forex market by this criterion, it is more lively and there are no such sharp jumps in rates. Due to dynamism and mobility, you can lose your investments if you do not adhere to a clear course of action and ignore analytical data. But at the same time, often not one pair is purchased, but several different ones. Therefore, even with a small loss on one, you can easily remain in profit at the rate of the other.

Dynamics

As I already noted, the stock market is relatively stable. There are no major changes observed here. The same financial instruments are used. New products are constantly appearing on Forex that make it easier to enter, learn, simplify the trading procedure itself and provide the opportunity to receive stable, quick profits. In addition, Forex operates 24 hours a day, every day, except Saturday (reporting time) and payment processing.

Availability

In terms of accessibility, Forex again takes the lead. Entry is simpler - registration occurs in a matter of minutes, while on the stock exchange this will take several weeks. You don't need a lot of starting capital - you can start trading on Forex even with 1 dollar. The main thing is to have access to the Internet. And to trade on the stock market you will need at least $1000. And if you make investments and entrust your money to experienced brokers, for example, Finam or Alfa Capital, then you will have to pay at least half a million.

Leverage

This factor will be of interest to those who are already familiar with the basics and are ready to take on greater risks—using credit funds. That is, let's say you only have $1000, but you would like to make a trade for a larger amount. On the stock exchange, the maximum you can get with a good trading history and collateral is 1:20. In Forex, this figure is much higher - from 1:100 to 1:1000. Simply put, on the stock exchange, if you have that same thousand, you can count on 20 thousand, but on Forex it is possible to carry out a transaction for 100 thousand without attracting your own funds.

Education

Training materials are provided both there and there. The main advantage of Forex in this regard is the presence of a demo version. That is, before you start trading with real money, you can understand all the nuances, practice, and hone this or that scheme using “fake” money. This significantly reduces the risk of loss.

How to start earning money and which market to choose?

What conclusion arises from all that has been said?

1. The stock market is, first of all, expensive, the prospect of earnings is long-term, reliable instruments bring a low level of profit.
2. The Forex currency market is dynamic, accessible, there are many basic schools on brokerage sites that will teach you how to trade independently step by step.

If you consider trading on the stock market or the Forex currency exchange as a form of stable, growing earnings, you need to have the makings of a mathematical analytical mind and multiply them many times over with knowledge, practice, experience, observation, attentiveness, and concentration.

Naturally, this will take you a lot of time. But suppose you have start-up capital, and you, as a competent and financially savvy person, understand that money should work. Every day spent under the mattress reduces their value and makes you poorer.

What to do? Ignore all the advice, immediately deposit money with the broker, open a couple of transactions and... successfully lose everything in a couple of hours. This is not a horror story, these are statistics! While you are studying, prepare only for losses; there can be no talk of any earnings. As long as you buy shares on the stock exchange, relying only on other people's forecasts, or buy the most profitable ones - they are also the riskiest shares, you will not make a profit!

What's really worth doing? In the field of investment instruments there is such a thing as “trust management”. I will not go into details now; I am preparing a separate analytical article about trust management (don’t forget to subscribe to updates and receive this article first!), I will only say that trust management can be different - reliable, dangerous, with or without guarantees for the investor, with trading and non-trading risks, etc.

But there is one, in my opinion, ideal model of trust management. It was developed and implemented on their sites by brokerage companies and Forex market intermediaries. I'm talking about PAMM accounts. To put it simply, a PAMM account is an automatic module that connects one professional trader with thousands of investors. Module automation includes:

• profit distribution;
• access to deposit/withdrawal of funds;
• protection of the investor from fraudulent actions of the manager.

I have already discussed the theory and practice of investing in PAMM accounts more than once in blog articles: “”, “K”, “”, etc.

What are the advantages of PAMM accounts:

1. You can start receiving passive income from the first week of investing.
2. Passive investing can be combined with classes in effective independent trading and your main job.
3. The number of brokers, PAMM services and PAMM accounts today is so large that there are simply no problems with diversifying an investment portfolio.

Where to start investing in PAMM accounts? From my article ““. I’m ready to answer all questions in the blog comments, on Skype website.

Manage your money correctly and it will reciprocate!

Have you had any experience of independent trading on stock exchanges? How long did it take you to achieve stability and profitability? Share in the comments, I’ll be happy to hear your story.