Forex vs Stocks: What are the Differences? – CMC Markets

A particular appeal of forex trading is the volume of assets available to trade. We offer forex trading on more than 330 currency pairs, including major, minor and exotic forex pairs, which is the highest figure in the current market (see our forex trading​ page for more details). Forex traders tend to lean toward major currencies such as EUR/USD and GBP/USD, as these considered to be generally stable within the forex market.

The stock market opportunities are endless, however, it does not come close to forex trade volume of around $5 billion per day. You can trade on thousands of global shares within the technology, pharmaceutical and automobile industries. This includes both blue-chip stocks and penny stocks. Some of the most distinguished global indices are traded on the stock market, such as the Dow Jones Index and S&P 500.

However, the number of shares on the stock market is not always seen as an advantage over forex trading. Some traders prefer the reliability of trading a small number of top forex pairs that have remained in the market consistently, rather than deciding between existing, new and emerging possible stocks to invest in.

A popular method of trading stocks over forex is through ETF trading​. Exchange-traded funds are investment funds that hold a collection of underlying assets and work in a similar way to shares. This gives the trader partial ownership of the underlying stock, whereas spread bets and CFDs do not provide any ownership to the trader. Given that stock traders often prefer to open long-term positions within the stock market, ETFs are a useful product for this purpose*.

Browse our instruments​​ page to explore over 8,000 shares and 1,000 ETFs available to trade on our platform now.

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