Forex vs Stocks Differences and Similarities

Forex and stocks are both highly profitable instruments for investing, albeit one may be better than the other for you. Continue reading our Forex vs stocks guide and get a better understanding of how you can trade stocks and Forex through CFDs securely with CAPEX.

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Author:

Roy Connor

Last Updated on:

14/03/2023

Topic:

Trading

Tight spreads and minimal trading costs

While some brokers focus more on making profits and less on the trading experience they offer, that’s not the case with CAPEX. We offer over 55 Forex pairs with the tightest spreads that start from 0.01. Plus, we don’t charge traders any commission on deposit or withdrawal and have no hidden charges. So, you can simply sign up for an account with us within minutes and invest in Forex through CFDs with the lowest charges and best trading tools. Our online Forex course is also excellent as it explains Forex trading for every skill level through video content.

Knowledge is Power!

When it comes to your money - it's priceless.

An investment in learning how to trade always pays the best dividends. Get access to the right resources, tools and information so you can trade with all the information available!

Sign Up and enjoy our in-platform trading lessons

INTRODUCTION TO FOREX

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13:20

FOREX INDICATORS

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13:20

FOREX CANDLESTICK GUIDE

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14:38

UNDERSTANDING AND USING FIBONACCI

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04:20

FOREX CHART FORMATIONS PATTERNS

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14:27

TIMING IN FOREX

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06:20

CRYPTOCURRENCIES

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82:25

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Smooth trading platforms

Trading on a platform that isn’t smooth or easy to use can lead to a poor overall trading experience.

Here at CAPEX, we offer traders two excellent trading platforms – CAPEX WebTrader and MetaTrader 5 (MT5). Both our platforms are highly intuitive and have a smooth user interface.

From the moment you land on our trading platform, you’ll notice that every function is neatly aligned on the front page and can be accessed through a single click. Plus, our platforms offer several integrated tools that are designed to support traders throughout their trading journey, such as technical indicators.

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Forex trading 101

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!

Pros and cons of trading Forex

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.

Trade CFDs on Forex with CAPEX

Here at CAPEX, we offer Forex through CFDs. You can invest in over 55 unique currencies through our trading platform with the tightest spreads and lowest trading costs. Plus, we offer leverage up to 1:30 to our retail traders.

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Stock trading 101

Stock is a collective term that is used to describe the total shares of a company. Buying stocks means becoming a partial owner of a company and sharing the company’s losses and profit. Stock traders buy and sell stocks to make a profit, although there’s always a risk of losing money as well in case the stock market crashes.

How does a trader make profits with stocks?

If a trader predicts that a company’s shares will rise in the near or far future, they will buy those shares and wait for them to rise in value. Then the trader will sell those shares to make a profit or to avoid loss.

Pros and cons of trading stocks

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.
Stock trading 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.

Trade stocks CFDs with CAPEX

If you prefer to trade stocks, we also have you covered with stock CFDs with and without leverage. If you’re looking for a way to trade stocks with less capital and more flexibility, you can trade stocks through CFDs with us at CAPEX. We offer higher leverage, low trading costs, and several learning tools to support traders throughout their trading journey.

Forex vs stocks: Differences & similarities

Forex and stocks are entirely different instruments. While Forex refers to the buying and selling of currencies, stock trading refers to the buying and selling shares. The only similarity is that they can be traded through CFDs, they’re both suitable for every kind of trader, and both instruments can offer great potential returns for investors – provided you’ve got the right strategy in place.

Similarly, when it comes to investing, the primary differences are that stocks offer dividends, they’re easier to trade, and give traders a wider range of trading opportunities. On the other hand, Forex traders are limited to 8 major currencies and don’t get dividends.

Here at CAPEX, we offer traders demo accounts for each type of instrument. Hop on to our platform and give our Forex demo account and stock trading demo account a try to better understand which instrument you should choose to trade.

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Forex vs stocks - Which instrument should you choose?

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.

Why should you trade with CAPEX?

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

Signing up with CAPEX is a quick and simple process. All you need to do is:

Jump on to our website and click on the sign-up option.
Enter a few basic details, including your name, email address, and age.
We’ll redirect you to our platform, where you’ll be asked to complete your registration.
Enter a few more details, such as income, taxation, and credit history.
Lastly, you’ll be asked to take an assessment. This is so we can judge your trading knowledge and skills and then place you on our platform accordingly.

Once you’ve completed the signing up process, we will verify your account, and you can begin your trading journey immediately. We do recommend that you sign up on our demo account to understand our platform and your choice of the instrument better.

Final thoughts – Trade both Forex and stock CFDs at CAPEX

Choosing which instrument to invest in can be extremely confusing. However, why worry when you can invest in several instruments through a single trading platform.

Whether you’re inclined towards investing in stocks, or you’d prefer investing in Forex, you can do so with ease on CAPEX.com. Plus, we have a wide range of tools and features that are designed to support traders as they invest.

Sign up with us within minutes to begin your trading journey with ease and convenience.

Forex vs Stocks – FAQ

🤔 Can Forex trading make you rich?

👀 Is trading with leverage ideal for beginners?

🤷 Are stocks low-risk instruments?

HIGH RISK INVESTMENT WARNING: CAPEX.com is a website operated by Key Way Investments Limited, which is authorised and regulated by the Cyprus Securities and Exchange Commission, licence number 292/16. Administrative Address: 18 Spyrou Kyprianou Avenue, Suite 101, Nicosia 1075, Cyprus.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money. Trading through an online platform carries additional risks. Refer to our Regulation section here.

Restricted Jurisdictions: We do not establish accounts to residents of certain jurisdictions including Japan, Canada and the USA. For further details please see Terms & Conditions.

Key Way Group Ltd is the holding company of Key Way Investments Ltd, JME Financial Services (Pty) Ltd and Key Way Markets Ltd. Key Way Investments Ltd operates CAPEX.com and is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) (license no. 292/16) with branches in Romania and Spain, and registered with the Romanian Financial Supervisory Authority (ASF) (registration no. PJM01SFIM/400013), and with the Spanish National Securities Market Commission (CNMV) (registration no. 129), respectively. JME Financial Services (Pty) Ltd operates za.capex.com and is authorized and regulated by the South African Financial Sector Conduct Authority (FSCA) (license no.37166). Key Way Markets Ltd operates ae.capex.com and is authorized and regulated by the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (license no. 190005). KW Investments Ltd operates sc.capex.com and is authorized and regulated by the Seychelles Financial Services Authority (FSA) (SD020).