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Forex vs. Equities and Futures

 

 

 

FOREX
EQUITIES
Liquidity (volume generated) Near 2 trillion dollars of daily volume Around 200 billion dollars
Trading Hours 24 hr market, 5.5 days a week Monday through Friday from 8:30 EST to 5:00 EST
Profit potential In both, falling and raising markets Most investors profit only from raising markets
Transaction costs Commission free, tight spreads High commissions and transaction fees
Buying power Leverage up to 400:1 Leverage from 2:1 to 4:1
Specialization 7 Major currency pairs More than 400 stocks to choose from

 

 

 

 

 
FOREX
FUTURES
Liquidity Near 2 trillion dollars of daily volume Around 400 billion dollars
Transaction costs Commission free, tight spreads Wider spreads plus high commission fees
Leverage Fixed rate of leverage Different levels of leverage on overnight positions than day time positions
Trades execution Instantaneous execution Inconsistent execution

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