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 such instruments as metals, precious metals, options, futures, you can work with them through almost any dealing centers , using a standard trader terminal or a web platform on the dealing center’s website.

Also, some DCs provide the opportunity to work with shares, but this is a more limited option than on the stock exchange. Let's conduct a comparative analysis of trading on these two exchanges.

1. Difficulty of trading - in both cases, technical and fundamental analysis are used, although the latter has a greater impact on the stock market, since stock prices react much more strongly to the influence of news.

Apart from this, there are no special differences; in both cases you can use technical indicators and various scripts. 2. Amount of earnings – they definitely earn more on Forex, the reason for this is leverage, or rather its size.

Brokers who act as intermediaries in stock transactions rarely provide their clients with a leverage of more than 1:100. At the same time, in the foreign exchange market the provision of leverage of 1:500 is considered the norm. Which opens up new earning prospects, especially for scalpers. 3. Working hours - the stock market (for example, the MICEX) operates during strictly designated hours, usually this time coincides with the working day and you will no longer be able to trade in the evening after work.

At the same time, the foreign exchange market operates 24 hours a day, so this option is suitable even for people working at their main job. 4. Trading instruments - in Forex they are more universal and liquid, which affects the speed of transaction execution, as well as the size of the spread.

5. Amount to trade - most stock brokers do not work with amounts less than $1,000, while in forex there are so-called cent brokers , which allow you not only to start trading with an amount of just a few dollars, but also to carry out transactions using mini lots.

To summarize, we can definitely conclude that Forex trading is more suitable for a novice trader due to lower requirements for the initial deposit and more flexible trading conditions.