Forex and the stock market, which are among the markets that attract investors, have been very popular in recent days. There are many people who have difficulty deciding between Forex and the stock market. For this reason, we have researched questions such as what is Forex, what is the stock market, what are the advantages of forex compared to the stock market for people who are interested.
Advantages Offered To Forex Investors
Forex, which became legal in Turkey in 2011, is one of the platforms where investors often trade in recent days. One of the reasons why it is often preferred by investors is that the forex market has an advantageous structure and functioning.
Forex, known as currency trading, also has a fairly wide range in terms of investment instruments. You can get support from various brokerage firms to make Forex investments.
Leverage ratios offered in Turkey are at 1: 10. In fact, by 2017, there was the possibility of using 1:100 leverage, and this provided a serious advantage. But reducing leverage has limited the advantage of the forex market in Turkey.
Again, with high collateral and the latest withholding tax, the forex market, which has lost its advantage in Turkey, continues to be attractive to investors abroad.
Most foreign forex companies are able to access a minimum investment amount of $ 100 and offer a leverage advantage ranging from 1:100 to 1:500. In this sense, the most popular forex company in Turkey is Lord FX and IC Markets, which have a very high number of investors abroad, are located in brokerage firms.
Advantages Of The Stock Market
A market organized for products requested according to certain rules, the stock market is a platform where commercial goods and negotiable instruments are bought and sold by buyers and sellers. Shares of publicly traded companies, bonds, bonds, funds and products called commodities, are traded on the stock market. As with Forex investments, you can choose brokerage firms when performing stock market transactions.
The stock market has less risk than the forex market. But, of course, as the risk decreases, the possibility of achieving high profits also decreases. Although an investor who entered the stock market in 2020, even if he entered the stock market without knowing anything, he had the opportunity to make serious money. During the pandemic period, increasing interest in the stock market and increasing the number of investors were instrumental in this.
Recently, attention has been drawn to the formation of a balloon in the world’s stock markets. However, it is not yet possible to predict where the upward movement will end in the stock markets, which continue to rise, but this period seems suitable for Exiting the stock market. For this reason, transitions from the stock market to forex begin to increase during this period.
What are the differences between Forex and the stock market?
Elements such as knowledge and market tracking in both markets will help you increase your earnings. The most obvious difference between Forex and the stock market, which are quite similar to each other, is that the stock market is managed from one center, and Forex has many different centers. We can also answer the question of what are the differences between Forex and the stock market that people interested in economic investments are interested in as follows:
If you are an investor trading on the stock exchange, you can perform your transactions within a certain time interval. In the Forex market, you can trade for 24 hours 5 days a week. For this reason, the Forex market is more advantageous for investors.
In Forex, you can trade with a leverage ratio of 1:10, 1:100, which varies by country or brokerage firm. In addition,in foreign Forex firms, the high leverage ratios offered are attractive to the investor. In the stock market, the leverage ratio is determined as 1: 1. Of course, in addition, the exchange offers the opportunity to trade on credit, but this is not comparable to leverage.
Commission and transaction fees are charged on the stock exchange, while commissions are not charged on forex transactions. (ECN account types have a commission deduction. )
Forex trading is performed only online, while the stock market can also physically buy for some transactions.
Forex product and process variety is quite large. Choosing between stocks on the stock market can create difficulties.
Forex’s bidirectional trading feature, that is, the ability of an investment tool to gain from depreciation between another tool, is one of the most important features that distinguish forex from the stock market.
Major stocks traded on the Forex market can be bought and sold. For example, shares of companies such as Thyao, Asels, Garan, which have a very high trading volume in Turkey, can be traded through forex hespaps.
When the order system is examined, an order that you give through the stock market is traded in the market after it is transmitted to the brokerage firm, while in Forex, the orders that you can give 5 days on weekdays can be applied instantly.
In this article, we shared the advantages of forex compared to the stock market and the features that both markets offer to investors. If you are considering a new start to the stock market, we recommend that you also check out our article entitled Advice for beginners.