The main objective for my writing this article is to clearly inform you about the opportunities in the field of the Forex market. The Forex market — what do you understand by these two words? Before continuing, I want to remove a myth from everyone’s mind and that points to the discrimination between trading and investing. For the purpose of my clarification, I will refer to Al Thomas, President of Williamsburg Investment Company, who indicated in his writing, "If it doesn't go up, don't buy it". He did emphasize on the word ‘buy’. He also wrote, "Everyone who invests is a trader, only the time period is different." I took his words seriously after I was a victim of the fall down in the field of stock market in 2000.

So at present, we shall talk about the features of currency trading concerning the stock and commodity trading and also compare them.

Liquidity — The main working force for any kind of market is the liquidity of money and when it comes to the Forex market, it is the most financial market in not only a single country but the world which trades around 1.9 trillion dollars everyday. Because of the commodities market’s trading around 440 billion dollars a day and the US stock market’s trading around 200 billion dollars a day, the Forex market is much more beneficial. The Forex market ensures better trade implementation as well as prevents market manipulation. It also assures trading which is easily executable.

Trading time — As trading time is a very important thing for any kind of business, the Forex market remains open 24 hours a day (except weekends) acknowledging the necessity of the traders. That means in the US, it opens officially at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST). It also allows and enables active traders to choose the trading times in accordance with their necessity and to trade. Commodities trading hours are all over the board and it depends on which commodity you are wanting to trade. It also includes extended trading times in US stocks which can easily be traded from 8:30 am to 6:30 pm (ET) on weekdays. All the procedures are simple as a straw.

Leverage — Leverage is decided by Forex account size. In spite of Forex brokers offering leverage up to 400:1 (not that I would ever recommend that kind of leverage), your leverage could be 100:1 depending on your Forex account size. In the stock market, leverage can be high as 4:1. The condition of the commodities market is not so different than the stock market. In the commodities market, leverage gets varied with the particular commodity which is being traded but it can be very high as well. The leverage or working process is inherently riskier in commodity markets as they are not as liquid as Forex market. I was always feared thinking about the possibility even though I was never excluded of a commodity trade by the day limit.

Trading costs — The cost of transaction in the Forex market is only the difference between the buy and sell price of each and every currency pair. There are no other fees, let alone the brokerage fees. There are transaction costs and brokerage fees in both the stock and the commodity markets. In spite of your using discount brokers, those fees add up. Most of all no hidden fee is applicable in the Forex market.

Minimal investment — You can effortlessly open a Forex trading account by paying only a small account of $300.00. It took $5,000 for me to make the arrangement of opening my futures trading account. Now-a-days, the cost is even more.

Focus — 7 major currencies is used for making 85% of all trading transactions. Only in the US stock market there are 40,000 stocks. There are only 200 or some more commodity markets. Besides, most of them are very illiquid. Even some of them are not traded unless the hedges get there desirable amount. As you are seeing, the fewer number of instruments and other essential things enable us to study each and every one more personally and cordially.

Trade execution — We believe in perfection and proper completion. In the Forex market, trade execution is completed immediately. Moreover, the procedure is very instantaneous. You rely on a broker in both the equity and commodity marketing sectors, for the execution of your trades. The results of them are sometimes not according to the agreement and you may have to go through a lot of sufferings.

Security — It is security which is the most important part for any kind of business. The Forex market has a very strictly disciplined security system and it is well monitored by the team concerning security and safety. There are several stages of security for ensuring the safety of your money. You can easily keep faith in the Forex market for a long time business and assured benefit. Your money will be our responsibility. Even though all the security and safety methods, sometimes trading in the Forex market can be risky too.


Though all these features and chances make the Forex market an ideal trading center, it still necessitates a lot of education, discipline, manner, commitment, dedication, contribution, loyalty and patience. But besides everything, the Forex market needs your support, your faith and your association.