forex-vs-stocks

FOREX VS STOCKS

Open Market 24 hours a day 

The currency market is an over-the-counter (OTC) market, which means that there is no central market and clearinghouse where orders are negotiated.

Brokers all around the world are connected 24 hours a day by telephone, computer and fax, creating a market with excellent liquidity, providing investors with the possibility of liquidating their positions at any point in the day.

No commissions, fast and fair order execution 

Forex Africa is a market maker, our income comes from spreads and we DO NOT need to charge transaction commissions or fees to traders. 

Greatest possibility of profits and Hedging capability 

In contrast to the stock market, where there are literally thousands of stocks from which to choose, the current market allows the investor to focus on a few pairs of currencies. With the 4 pairs of primary currencies dominating the volume of transactions in the market, investors can focus their attention on the most important currencies.

This allows the user to carry out a detailed analysis of the currencies without having to worry about which action will have the greatest possibility of profits. 

The investor’s greatest ally 

 Technology has broken down the barriers that existed between the end users of currency purchase/sale services and the inter-bank market, becoming the investor’s greatest ally thanks to its power of range, which allows anyone wishing to participate, to do so. 

 Transparent and competitive 

 The currency market is much more transparent and competitive than other markets. The greatest influence is exerted by central banks, and even so, they do not have enough power to affect the market drastically. 

 Benefits of the Margin 

In the interbanking market, the minimum investment amounts are contracted by lots of 100,000 units of the established currency. In order for you to participate in the Currency Market, AFM offers our clients 100 to 1 leveraging (1% margin), which allows the client to operate with a lot of 100,000 monetary units with only a margin deposit of 1,000 monetary units. It is important to remember that 1,000 monetary units (in the case of a Mini Forex Account, it is 100 units), is the minimum requirement established for the investor to operate.

 Allows the client to gain large earnings.
 Multiplying power of 100:1
 Allows the client to control and realize earnings of amounts 100 times greater than the amount invested.
 Account balance: If the guarantee margin cannot be covered, the open positions will be automatically closed. That is, you can never have a negative balance.

 Short positions 

 Finally, the Forex has fewer restrictions. The stock markets is focused on the investors who seek rising markets and there are limits on opening short positions. For example, a stock can only be stopped on a climb. Since the purchase of a currency in the currency market always implies selling another, these small-sales restrictions do not apply.