Why Forex Trading Is Better Than Stocks. Forex trading uses pairs, so the trade depends on the performance of two economies rather than trading a single stock. Traders can buy and sell currencies or exchange one currency for another.
Most brokers are compensated for their services through the bid/ask spread. Forex is an over-the-counter or global decentralized market for foreign currencies. Investors can hold individual stocks for months or years, while it's rare to hold currencies for more than a few hours or days.
For starters, the forex market is the world's largest market in terms of daily transaction volume, and it's almost the most liquid.
However, while profits can be much larger, losses can also be multiplied by the same amount, very quickly.
Why forex is better than stocks. In fact, forex trading is so easy that anyone can just create an account and trade – this being one of the reasons why forex trading has grown so popular, while stock trading still seems complicated and difficult for most. Forex vs Stocks which is better for beginners?