Forex vs Stocks Differences and Similarities

Forex is short for foreign exchange, which is the largest decentralised market in the world. The Forex market has an annual turnover of trillions of dollars, which is why it’s considered a great place to begin your investment journey.

Why do traders exchange currencies?

Forex traders exchange currencies to profit from their shifting prices. So, if a currency’s value seems to be going up, a Forex investor can buy that currency. Whereas, if a currency’s value appears to be going down, Forex traders can exchange it for an alternative currency that might be going up in the market.

Factors influencing Forex Trading

Important political developments

Tax changes

Consumer & producer preferences – CPI or PPI reports

Interest Rate Decisions - Bank of England MPC Announcements, Fed Interest rate Decisions, etc.

Other market-related FX news

Visit our Special Articles page for the latest market news on cryptos, stocks, indices, and more!

Trading Forex has a few advantages over stocks:

• Forex trading offers opportunities in falling markets as well as rising markets.
• You can trade Forex with high leverage
• Forex is easy to trade & simple instruments to understand.

However, it also has a few disadvantages:

• Forex is traded with high leverage, which results in a higher risk of loss.
• There are numerous factors that may affect a currency’s value, making the Forex market high-risk.

Trading stocks has a few advantages over Forex:

• You can earn dividends through stock investments.
• There are numerous trading opportunities.
• You can save money if you invest smartly.
• Day trading on stocks is simple, so it’s convenient for every kind of trader.

However, it also has a few disadvantages:

• Dividends and profits made on stocks are taxable.
• Trading stocks is risky because you could lose all of your investment.
• Low investment and short-term investments in stocks aren’t so profitable.

When it comes to trading at CAPEX, you will find a great selection of instruments to choose from. So, traders should assess each instrument carefully before deciding which one suits their trading needs. If you’re looking for more trading options and want to diversify your trades, stocks would suit you better.

Although if you want to trade a slightly more complicated instrument but want the opportunity to make profits faster and trade with leverage, then you should go for Forex. The best thing to do is practice trading both instruments on a demo account, then decide based on your trading experience and its outcome.

While the choice between Forex vs stocks is a tough one, you can invest in both these instruments through CFDs here at CAPEX. Sign up on our demo account feature and experience trading over 2100 instruments through CFDs with the help of our excellent learning tools.

At CAPEX, we want you to have at your disposal all the tools you need to learn trading. That’s why, at CAPEX, you’ll also have access to our trading academy, where you can learn everything about trading.

Trading with CAPEX.com

The great thing about CFD trading online is that you can do it anywhere there is a secure internet connection. Inevitably, this means that mobile trading has proven particularly popular as traders can conveniently open and close positions from their mobile or tablet as and when it suits them.

Discover the functionality to ...

Trade more than 2,100 CFDs

Manage your investment horizon

Set take-profit or stop-loss limits

Open short and long positions

No fees for opening and closing positions

Trade with and without leverage (StoX)

Start Trading Now

The broker that you choose to trade with plays a massive role in the success or failure of your trading journey. To ensure that your trading experience is positive and profitable, it’s essential that you sign up with the best online broker regardless of your experience level. Here’s why CAPEX should be your go-to broker for CFD trading:

Licensed and regulated broker

The first sign of a safe and secure broker is the license and regulation it practices under. CAPEX is licensed under a tier-1 financial authority, CySEC. We’re also registered with several financial institutions from across the globe and carry out many practices to ensure the security of our user’s funds and information.

We value your learning

Here at CAPEX, we offer our traders several learning tools, including an online trading school, a trading dictionary, and even a trading blog. Our trading school – CAPEX Academy, teaches traders from all levels through video content. Similarly, our trading dictionary is a great tool for learning trading terminologies; meanwhile, our blog is regularly updated by expert traders and allows you to remain updated with market trends and the latest Forex news.

You can diversify your trades

What better way to minimise the risk of trading than to invest in a wide range of markets. Not only does this help traders build a portfolio, but it also reduces the risk of losing all your money in one go. Here at CAPEX, you can get access to a diverse range of over 2100 tradable assets. Whether you’re interested in Forex, stocks, crypto, or commodities, you can invest on our platform with ease.

Available customer support

We offer customer support through phone, live chat, and email. Plus, our support team is available seven days a week. You can get in touch with a team member at CAPEX for any queries you might have, that too, in a number of languages. We also recommend that users check our FAQs page if they have any questions, as we’ve answered most queries in an elaborative manner over there.

Register

Register an account on CAPEX.com and start trading.

Verify

Send over your documents and verify your account.

Deposit

Login into your CAPEX.com account and deposit money.

Trade

Start trading with CFD’s and over 2100 other instruments.

Register Account