What is the ultimate difference between forex and stock.

[nehmer]

I think if I am not wrong forex brokers earn from traders like us through spreads that we see in the market watch. And stock earn through commissions from large brokerage fee.

[Hoang Long]

I think if I am not wrong forex brokers earn from traders like us through spreads that we see in the market watch. And stock earn through commissions from large brokerage fee.

Yes, broker earn money by the spread while Stock brokers earn through commissions or a large brokerage fee. But I think there have few hidden fee that Forex broker charge us such as swap or they can simple trade against us and make money from our losses.

[nahiyar]

I think if I am not wrong forex brokers earn from traders like us through spreads that we see in the market watch. And stock earn through commissions from large brokerage fee.

Not only commission fee, but also from brokerage fee.Traders in stock exchange pay the 10% tax on gains of shares to stock exchange.They pay fixed tax of same 10% on the amount of divined paid to them.Every country has different rates of taxes for their sock exchange traders..

[JoeltonsInv]

Another different point between Forex and Stock that is Forex is primarily a short-term investment. Most traders buy and sell within a 24 hour period, sometimes it takes even only a few minutes to close a forex transaction. This is unlike stocks, where investors can hold on to their stocks for the long haul and wait for dividends to be paid out.

How long an investor holds a position is a matter of choice and his capability and we find them both in stock and forex trade, traders who take very long positions as well as intra-day traders, it is a choice!

[andry777]

There are a lot of differences in forex and stock. In forex, we can trade everyday 24 hours and 5 days a week but in stock we could trade only in working hours and 5 days a week. In forex, we can trade with small amount of capitals, less than $100, but in stock we must have high enough amount of capital. In forex, the movement of price is very volatile but in stock, it is more realible.

[JoeltonsInv]

There are a lot of differences in forex and stock. In forex, we can trade everyday 24 hours and 5 days a week but in stock we could trade only in working hours and 5 days a week.

I think you got a great point here about the ability to trade the forex market anytime within the 24/5 trading days as against the daily opening and closing hours of the stock market's 5 days a week trading. But about making trades with small amounts in forex, it is also possible in the stock market - that is where the penny stocks comes in!

[nehmer]

Not only commission fee, but also from brokerage fee.Traders in stock exchange pay the 10% tax on gains of shares to stock exchange.They pay fixed tax of same 10% on the amount of divined paid to them.Every country has different rates of taxes for their sock exchange traders..

I have not heard of this brokerage fee is this different from the fee we withdraw from the brokers online? If it is 10% it is very high already. I do not know if the chances of winning in stock is much more easier than forex trading.

[Hoang Long]

I have not heard of this brokerage fee is this different from the fee we withdraw from the brokers online? If it is 10% it is very high already. I do not know if the chances of winning in stock is much more easier than forex trading.

That brokerage fee is different with withdraw fee and moreover, brokers usually don't charge withdraw fee, you pay fee to your payment processor you used, not for brokers. And, I don't think the chance of winning on Stock market is higher, it must be equal thou, just my 2 cents

[JoeltonsInv]

One more major difference between forex and stock is that it is very rare for a country's currency value to get to zero, though a country might devalue its currency but it really get to zero. On the other hand, quite often we hear of companies that went bankrupt and everything associated with their stock goes down the drain.

[bangcool]

Yes, broker earn money by the spread while Stock brokers earn through commissions or a large brokerage fee. But I think there have few hidden fee that Forex broker charge us such as swap or they can simple trade against us and make money from our losses.

Then use Islamic account that have swap free. Every time I register a forex account, I will always use Islamic account to avoid this swap commission. The problem is sometimes broker cancel our profit if we trade not more than 1 minute, sometimes we must open our trade more than 2 minutes. They afraid we make profit from the news.

[Hoang Long]

Then use Islamic account that have swap free. Every time I register a forex account, I will always use Islamic account to avoid this swap commission. The problem is sometimes broker cancel our profit if we trade not more than 1 minute, sometimes we must open our trade more than 2 minutes. They afraid we make profit from the news.

Actually swap is not a bad thing because there have negative and positive swap so you can able to make money from swap also, I know there have hedging strategy that take advantage of this positive swap and make profit from swap alone but it required huge manage account.

[nehmer]

That brokerage fee is different with withdraw fee and moreover, brokers usually don't charge withdraw fee, you pay fee to your payment processor you used, not for brokers. And, I don't think the chance of winning on Stock market is higher, it must be equal thou, just my 2 cents

I think FBS does give a fee 7 dollars what do you call that. the other fee is 0.01 per dollar if you have withdrawn your money in LR in other payment processors there has fee also not unless you are not alertpay pro there is no fee.

[nehmer]

That brokerage fee is different with withdraw fee and moreover, brokers usually don't charge withdraw fee, you pay fee to your payment processor you used, not for brokers. And, I don't think the chance of winning on Stock market is higher, it must be equal thou, just my 2 cents

I think FBS does give a fee 7 dollars what do you call that. the other fee is 0.01 per dollar if you have withdrawn your money in LR in other payment processors there has fee also not unless you are not alertpay pro there is no fee.

[Hoang Long]

I think FBS does give a fee 7 dollars what do you call that. the other fee is 0.01 per dollar if you have withdrawn your money in LR in other payment processors there has fee also not unless you are not alertpay pro there is no fee.

FBS charged $7 for your first withdraw BUT just in case you trade using bonus that broker gave you. You trade using broker's money and make profit with it then they ask for fee must be something acceptable. If you trade using your money then there have no fee, unless fee that payment processor charge you but it's not broker fee in that case.

[nehmer]

FBS charged $7 for your first withdraw BUT just in case you trade using bonus that broker gave you. You trade using broker's money and make profit with it then they ask for fee must be something acceptable. If you trade using your money then there have no fee, unless fee that payment processor charge you but it's not broker fee in that case.

I hope that is for the first withdrawal only since the other brokers are not getting anything from withdrawals its a good thing that there is a free bonus of 5 so that means you just work for 2 dollars + plus your profit from bonus to get a good amount in this broker.

[Hoang Long]

I hope that is for the first withdrawal only since the other brokers are not getting anything from withdrawals its a good thing that there is a free bonus of 5 so that means you just work for 2 dollars + plus your profit from bonus to get a good amount in this broker.

Yes, fee for first withdraw only and it was clearly mentioned in the rule, you can check it out at their homepage. Most people lose their bonus and even profit from trading after few weeks or month without getting a chance withdraw it but still, few people manage to make good profit.

[andry777]

I think you got a great point here about the ability to trade the forex market anytime within the 24/5 trading days as against the daily opening and closing hours of the stock market's 5 days a week trading. But about making trades with small amounts in forex, it is also possible in the stock market - that is where the penny stocks comes in!

I never knew if we can enter in stock market with low amount of capitals. If that is possible, so in what market we can use small aomunt of capitals and how many bucks is the minimum capital that we must have. In forex, we can start trading although we want to use $1, but in some brokers we must have at least $5 or $10.

[chuna1985]

@ Andry777 : Of course we can invest with a small amount in stock market, the stock market also offers leverage to their traders. But the advantage that forex leverage has over stock market leverage is that forex leverage is much higher than stock leverage.

[andry777]

@ Andry777 : Of course we can invest with a small amount in stock market, the stock market also offers leverage to their traders. But the advantage that forex leverage has over stock market leverage is that forex leverage is much higher than stock leverage.

I don't know if there is leverage too in stock market. It will be nice if stock market can give similiar high leverage as forex trading too, but the problem is not all people can join in stock market because their opening and closing position like working day in each day. The market is opening in 8AM and closed everyday in 4PM, so it's hard to use it as side-job. If forex, we can trade when we got time because it opened 24 hours.

[nahiyar]

I don't know if there is leverage too in stock market. It will be nice if stock market can give similiar high leverage as forex trading too, but the problem is not all people can join in stock market because their opening and closing position like working day in each day. The market is opening in 8AM and closed everyday in 4PM, so it's hard to use it as side-job. If forex, we can trade when we got time because it opened 24 hours.

As far as I know, leverage is being used also in stock markets.But, I don't know about the maximum limit available in stock market..And yes, Forex market has one advantage over the stock market that, we can trade in it at any time, because it is open 24 hours.A trader can do some other jobs too along with it.While it is not possible to if you are trading in stock market, because you personally need to attend the market the whole day..