The Market is Independent of Buy or Sell Programs

The stock market is very much prone to large fund buying or selling. In Forex trading however, the market is extremely liquid, making the possibility of a bank or fund controlling the overall market of a specific currency very remote. With the existence of contributors to the Forex market where the liquidity is unparalleled such as large net-worth traders, buyers and sellers, funds, banks and government trade currency exchange houses, control over the spot market buy or sell programs is highly unlikely.

Market Will Hardly Be Influenced By Analysts

The existence of analysts of prominent brokerage firms maintaining their sanctions and recommendations, like “buy,” even when the stock is quickly deteriorating is very evident despite the government’s efforts to put a damper on these types of doings. In the case of spot market however, analysts do NOT encourage or discourage the buying of a certain stock. The deal flow is not driven by any comments from an analyst. Analysts only examine and study the spot currency market.

Are You Willing To Keep Watch on 8,000 Stocks?

There are about 4,500 stock markets included in the New York Stock Exchange while another 3,500 are included on the NASDAQ, making an approximate of 8,000 stocks. In Forex trading, the number of markets is tremendously lower compared with stocks. There are dozens of Forex markets being traded, but the preponderance of the market trades only 4 major pairs of currencies. Are you going to spend a lot of time and effort trying to keep an eye on 8,000 when you could just keep watch on four?

Summary:

Legend: * – YES
+ – NO

Advantage Forex Stocks

Trading Without Commission * +

24-Hour Trading * +

Short Selling Without An Uptick * +

Execution of Market Orders Instantly * +

No Middlemen? * +

Buy/Sell Programs Have No Control On Market * +

Lack of Influence of Analysts on Deal Flow * +

Minority of Forex Markets Implies Easier Watch * +