A Brief Comparison Between Forex Market and Stock Market

Both the stock and the foreign exchange markets offer you huge income earning opportunities. Now, rising number of retail and institutional investors are participating in these financial markets. Hot debates have also cropped up regarding forex vs stock. Now, investors across the globe are thinking which is the better investment option, forex or the stock. Investing in both stocks and forex have certain advantages and disadvantages associated with them. It depends entirely upon the discretion of a particular investor whether to invest in forex or stocks. Here we make a comparative discussion on forex vs stocks.
Stocks or equities are popular investment avenues which are in vogue since long. Stocks are issued by the companies to raise capital needed for that company. Generally, when a company performs well, its stock price increases and vice versa. By purchasing the stocks of a company at lower price and by selling them at higher price, you can make monetary gains. In some cases, profit making companies issue dividends to the shareholders. Stocks are traded in the stock markets. The two major stock exchanges in the country are the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ). Stocks of most of the companies are listed in one stock exchange. However, there are some big companies whose shares are listed on many stock exchanges. Whatsoever, investing in stocks is regarded as wonderful long term investment option. It has been proved time and again that in the long run return from stock market investment outweighs return from all other types of investments.
Again, the currencies are traded in the foreign exchange market. The market for the foreign exchanges is generally treated as a short term market. The main characteristic feature of this market is that most traders who engage in forex trading, enter and exit the market within a day. The forex traders sometimes enter and exit from the market within few minutes.
Stocks are traded for limited hours. There are several stock exchanges throughout the world but each of them are separate and have fixed trading hours, whereas, forex market operates on 24/7 basis. Moreover, forex market is the largest financial market in the world. Forex market handles transactions worth of $1.5 trillion on a daily basis. On the other hand, daily trading volume on all the stock exchanges in the country is $100 billion.
Whatsoever, both stocks and forex offer huge income earning opportunities to the investors.