Forex vs. Equities

Forex Advantages

Investors and speculators using the Internet as an investment tool will find that the Forex market

offers several advantages over equities trading.

*200:1 is the entry leverage value. Brokerages will have margin calls set at different levels, exact leverage may vary.

*The trader's cost of doing business is called the Spread. It is the difference between the bid and the ask prices on your chosen currency pair.

24-Hour Trading

Forex is a true 24 hour market, 5.5 days a week, which offers a major advantage over equities trading. Investors are able to trade at odd hours, thus allowing more flexibility for personal, business and social activities. Whether trading at 8am, 2pm, or even 2am, there will always be buyers and sellers actively trading foreign currencies. Such flexibility allows traders to immediately respond to breaking news and other political factors driving the market.

Unmatched Liquidity

An investment market with lacking liquidity, or a lack of buyers and sellers at certain times, is often the demise of traders who need in or out of the market without delay. The global network of governments, banks, corporations, hedge funds, and individual traders that collectively drive the Forex market, are in essence, also driving the world's largest network of liquidity. Such high trade volume works to ensure trade execution and the stability of prices, regardless of the time of day.

Equities traders, on the other hand, are more susceptible to liquidity risk and are subject to potentially wider dealing spreads and larger price movements. Liquidity in the equities market really does pale in comparison to that of the Forex market.

High Leverage

Leverage is the key to understanding the risk associated with trading the Forex Market, and of course, the potential for gain. Many Forex brokers offer leverage as high as 200 - 1, meaning that $50 of margin would control a $10,000 position in the market (this is an example of a mini lot).

Pro Money Brokers accepts major credit cards. Not all cards are available.

Risk warning: Contracts for Difference (CFDs) and margined FX are leveraged products which carry a high degree of risk to your capital and may result in you losing more than your initial deposit. Trading CFDs may not be suitable for all investors and you should fully understand the risks involved before opening an account.

Pro Money Brokers is an online CFDs broker offering one of the widest ranges of energy commodities available on the market. Through our online trading platform clients have access to all major forex crosses, international indices and soft commodities with some of the lowest margins, tightest spreads and fastest execution available in the market. The fast and easy to use platform provides free charting, news, analytics and 24 hour customer support via chat, phone or email.