Trade Around the Clock
The
forex market is a near-seamless 24-hour market. Subject to
available liquidity, FXCM offers trading from Sunday, starting
after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service
is available 24/7). With the ability to trade around the
clock, currency traders have the advantage of customizing
their own trading schedule; they can usually get in or out of
the market at any time without waiting for an opening bell or
encountering a market gap. While trading stocks after usual
market hours is possible, very often that possibility is
negated by a lack of order flow or a drastic widening of the
bid-ask spread.
Pay No Commissions*
In the forex market costs are confined to the
bid-ask spread. FXCM charges no commission or additional
transaction fees, and its customers trade on spreads provided
to FXCM by some of the world’s largest banks via the FX
Trading Station. In the stock market, “no-fee” programs are
frequently offered only with provisos mandating minimum
account balances or minimum trades per month.
No Uptick Rule
Unlike the equity market, there is no
restriction on short selling in the forex currency market, no
matter which way the market is moving. Since currency trading
involves buying one currency and selling another, a trader has
the same ability to trade in a rising market as in a falling
one.
Forex Market Information Easily Accessible
Information about stocks is abundant, but so are the stocks.
Finding a trade opportunity in the equities markets may mean
sifting through data on thousands of stocks, while the forex
trader has only six major currencies to research.
Additionally, the vital information that moves equity markets,
such as revenues and profits, is proprietary and private, and
sometimes subject to fraud, deception and insider trading. In
contrast, virtually all of the news that bears on the forex
market is in publicly disseminated reports from governments or
research institutions, and released to everybody at the same
time.
The knowledge you've gained in analyzing stocks is easily
transferable to the forex market. Many of the economic
indicators familiar to equity traders, such as payroll data
and interest rates, affect the currency markets. And many
technical traders have found the forex market to be
particularly attractive, since currencies respond well to many
of the common technical indicators, such as MACD, RSI, and
Candlestick charting.To
learn more about transitioning from trading equity markets to
trading in the Forex market, contact the FXCM staff today at
888-503-6739.
*FXCM
is compensated for its services through the bid ask spread. |
