There are approximately 2800 stocks listed on the New York Stock exchange so will you check all 2800 stocks to know which one you will trade on ??
In currency trading, there are some of currencies traded, but market players prefer to trade the four major pairs.
Four pairs are easier to trade than thousands of stocks, aren't they ??
Here are some of advantages of Forex market over Stocks market:
1- 24 Hour Market
The Forex market is open for 24-hour. Most brokers are open from Sunday at 4:00 pm until Friday at 4:00 pm , with customer service usually available during this period.
also with ability to trade in U.S., Asian, and European market hours.
2- Minimal-No Commissions
Most Forex brokers charge no commission or additional fees to trade currencies online or in the phone.
Forex trading costs are lower than other market.
3- Instant Execution of Market Orders
Your trades are instantly executed under normal market conditions. Under these conditions, usually the price you see when you execute your order is the price you get.
Keep in mind that many brokers only guarantee stop, limit, and entry orders under normal market conditions.
4- Short Selling
Unlike equity market, there is no restriction on short selling in currency market. Trading opportunities exist in the currency market whether a trader is long or short, or whatever way the market is moving.
Since currency trading always involves buying one currency or selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market.
5- No Middlemen
One of the most problems in exchanges is middlemen and any third party between trader and buyer will cost them extra money "time or fees".
On the other hand, Spot currency trading is decentralized, which means quotes can vary from different currency dealers.
6- Buy-Sell programs don't control market
How many times have you heard that “Fund X” was selling “Y” or buying “U”? The stock market is very susceptible to large fund buying and selling.
In spot trading, the large size of Forex market makes the probability of any one fund or bank controlling a currency very small.
