Top reasons why trade Forex is better than other asset classes

Forex vs Stocks: Why trade Forex Wins

In the complex world of financial market, it is possible to trade virtually anything. If you like a good cup of orange juice every morning, you can trade it. You can trade complex derivatives like weather, lumber, grains like corn and soybeans, ETFs, bonds, and stocks. You can also trade currencies. This article explains why currencies are better than the other assets.

Trading Forex

For beginners, forex trading is a process in which you exchange one currency for another. For example, if you have $100 and are travelling to a country A, where the exchange rate for one dollar is A20, you will have A2000. When coming back to your country, you decide to exchange the A currencies to US dollars but the exchange rate has fallen to 15, you will have $133. Therefore, since currencies change every day, you can easily make money by buying and selling them.

See also  How to Trade Forex

Forex Market is Open 24 Hours Every Day

Stocks trade for a short period of the day. In the US, they trade between 9am and 4pm. This means that you can only make money for a limited amount of time every day. Forex on the other hand is usually open for 24 hours every weekday. This is simply because forex is traded in the major financial centers such as Tokyo, Shanghai, Hong Kong, Australia, and London. Since these cities have different time zones, it enables the market to be opened every day Monday to Friday, even during public holidays.

Four Simple Ways to Minimize Risks in the Forex Market

High Liquidity

Liquidity is very important for you as an investor. For example, if you are a real estate developer, you can build a good house but lack a customer to buy it. This happens because the real estate is not very liquid. On the other hand, forex is very liquid, meaning that you can buy a currency pair now and sell it in the next minute. This is because every day, currencies worth more than $5.3 trillion are exchanged.


Most companies that offer forex trading like Day Trade The World also offer leverage. A leverage is a type of credit advanced to a customer to invest. For example, assume that the stock of company A is trading at $5 and you have $1000 to invest. The maximum amount of shares you can buy are 200. Therefore, if the stock price rises to $8, you will have $1600. This is a profit of $600. If on the other hand someone loaned you another $1000 to invest, your profit would be $1600. Similarly, most brokers advance you this money for you to maximize the profits.

That said, it is impossible to stress enough the importance of practicing and taking the time to adapt to these capital flows. On  websites like these, you can get multiple options to start your practice without risking any capital (You can also do this on our demo platform). You will begin to gather the self-confidence that is vital for good results.


If you invest in a company, there is only a limited amount of data you will get every day. In forex on the other hand, the data is usually released on a daily basis. For example, the US can release jobs numbers today and Australia will release its manufacturing data the following day. This data can help you a lot make a good decision on whether to buy or short a currency.
Trade Anywhere

Many countries have restrictions on who can buy stocks. For example, only people in the US can buy US stocks. Currencies on the other hand can be traded from most countries.

External Useful Resources

Liked this blog post?

Sign up for The Opening Bell to receive our bi-weekly newsletter with actionable insights and hone your day trading skills with the help from our market experts and your favourite TraderTV personalities, delivered straight to your inbox every Tuesday morning.

Live Trading with DTTW™ on YouTube

DTTW™ is proud to be the lead sponsor of TraderTV.LIVE™, the fastest-growing day trading channel on YouTube.

With nearly 375,000 subscribers, TraderTV.LIVE™ features a daily live trading broadcast, professional education and an active community.

Watch TraderTV.Live

Accepted Payment Methods:

payment accepted dttw 2020

Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction. Due to current legal and regulatory requirements, United States citizens or residents are currently unable to open a trading office with us.

© 2011-2022 Day Trade The World™ All rights reserved.

Day Trade the World™ is a registered trademark of Select Vantage Canada Inc. 

Privacy PolicySitemapFraud Alert.