What is more profitable: Forex or the stock market?

You have decided to become a trader, but you are faced with the question of what and where is more profitable to trade, because you want to use your initial capital with maximum benefit.

In addition, an important factor is the complexity of the work itself and the risk of losing your money. At this time, two main options are available to the average trader - trading on Forex or the stock exchange.

As for working with instruments such as metals, precious metals, options, futures, you can work with them through almost any deiling centers using the standard trader or web terminal on the website of the dying center. Also, some DCs provide the opportunity to work with shares, but this is a more cut option than on the stock exchange.

We will conduct a comparative analysis of trade on these two exchanges.

1. The complexity of trade is in both cases a technical and fundamental analysis is used, though the latter has a greater impact on the stock market, since the promotional courses react much more to the effect of the news. In addition, there are no special differences, in both cases, technical indicators and various sripts can be used.

2. The size of earnings - Forex is explicitly more, the reason for this is the credit shoulder, or rather its size. Brokers who act in transactions with shares rarely provide their customers with a credit shoulder of more than 1: 100. At the same time, the currency market is considered the norm for the provision of shoulder 1: 500. What opens up new prospects for earnings, especially for scalper.

3. Working hours - the stock market (for example, MMVB) functions in a strictly allotted clock, usually this time coincides with the working day and you will no longer be able to bargain in the evening after work. At the same time, the foreign exchange market functions 24 hours a day, so this option is suitable even for people employed at the main job.

4. Trade tools - on Forex, they are more universal and liquid, which affects the speed of transactions, as well as the size of the spread.

5. The amount for trading - most of the stock brokers do not work with the amounts of less than $ 1,000, at the same time there are so -called central brokers , which allow not only to start trade from a sum of only a few dollars, but also to carry out transactions using mini -lots.

By summing up, it can definitely be concluded that Forex trade is more suitable for a novice trader due to less requirements for the initial deposit and more flexible trading conditions.