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Advantage |
FX Market |
Stock Market |
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24-Hour Trading |
Yes |
No |
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Commission Free Trading* |
Yes |
No |
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Rapid Execution of Market Orders |
Yes |
No |
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Short-Selling without an Uptick |
Yes |
No |
*FXCM is
compensated for its services through the bid
ask spread.
24-Hour Market
The Forex market is a seamless 24-hour
market. The FXCM dealing desk is open from
Sunday at 5:15PM EST until Friday at 4 PM
EST (client service is available 24/7). With
the ability to trade during the U.S., Asian,
and European market hours, traders have the
advantage of customizing their own trading
schedule.
Commission Free Trading*
FXCM charges no commission or additional
transactions fees to trade currencies online
or over the phone.
Combined with the fully transparent spread,
sometimes as low as 2 pips,
Forex trading costs can
be lower than those of any other market.
*FXCM is compensated for
its services through the bid-ask spread.
Rapid Execution of Market Orders
FXCM prides itself in striving to offer some
of the best execution possible in all market
conditions. FXCM offers rapid execution and
will make best efforts to fill your trade at
the price requested. On the FX trading
station, traders execute directly off real
time streaming prices.
Short-Selling without an Uptick
Unlike the equity market, there is no
restriction on short selling in the currency
market. Trading opportunities exist in the
currency market regardless of whether a
trader is long or short, or which way the
market is moving. Since currency trading
always involves buying one currency and
selling another, there is no structural bias
to the market. Hence, a trader has an equal
access to trade in a rising or falling
market.
Equity Market: Making the Transition to
Forex
Equity markets can be used as a key
indicator for movement in the Forex market.
As technology has enabled greater ease with
respect to transportation of capital,
investing in global equity markets has
become far more feasible. Accordingly, a
rallying equity market in any part of the
world serves as an ideal opportunity for
all, regardless of geographic location. The
result of this has become a strong
correlation between a country's equity
markets and its currency: if the equity
market is rising, investment dollars are
coming in to seize the opportunity.
Alternatively, falling equity markets will
have domestic investors selling their shares
of local publicly traded firms only to seize
investment opportunities abroad.
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