Hello! Between Forex Trading and trading on the stock exchange a lot of differences, each trader is faced with this choice. What would I have chosen on your site and why? Now we shall understand!
In order not to tell what you do not know, a little more than a month ago, I opened a brokerage account in the Russian stock market and felt the whole situation on its own operator *! As I opened this account is another story that deserves attention, explain below.
Forex or the stock market? What is the difference?
1. A difference is felt immediately, with study of the terms of trade on the broker's website. I did not meet minimum deposit of less than 30 000 rubles. In a company where I opened my expense - 50 000 rubles. In the forex strap much lower DC willing to open accounts, ranging from $ 1.
2. Taxes. When trading in the stock market your broker is your tax agent, ie pay taxes on profits without your participation, you can not worry about it, everything officially. It is possible to ask for an income statement.
DC does not give the luxury of taxes in general few people remember, and adequate information is simply no (tried to fix). Do you want to - pay, do not want - do not want.
3. Opening an account takes minutes on the strength of the forex market 5 (for more details, you are interested).
The stock opened the score 2 weeks! Please request a broker's website, the next day I called back, have specified the required data. Later came SMSka address Ulyanovsk office, it was necessary to sign the documents. Ok, I went to the office. The closer to the address specified in the SMSke, the big question tormented me. Outskirts of the town ... The private sector, gardens ... Asphalt ended ... A strange place for office brokerage firm! I still got to the end and saw ... a garage! In fact, some in the garage and caretaker jersey! Office of course was not there.
Call (sent in SMS), specify the address was a mistake, the office was located in the city center. Here is the beginning!
Signed a document on the same day did not work (pages 80 to sign!), The staff is something messed up, had come 2 times, so delayed the whole procedure.
4. Now only shopping moments. Trading volumes. In the forex they do not exist, or there is a parody (tick volume, ie the number of ticks for a certain period of time). In the stock market you can find the real volume of transactions. This information can serve as a good filter for many trading systems.
5. Limit orders. The essence of these proposals radically different compared to the sites. Exposing such a warrant on forex, you will get a sale at the price of the bid, and buy at the ask price.
Exposing such an order on the stock market, you become a so-called "liquidity provider", your application can see all the other traders. When the price level will reach your application, make a direct deal, meaning you sell the trader, who has decided to buy "the market", he buys at the ask price, and you are at the same price sell! The same applies in the opposite direction. Thus, you can trade without a spread, at the best prices. Only this chip can turn a losing strategy in the forex profitable for the stock market.
6. Glass. With it, you can real-time tracking of transactions taking place, to see at what levels are large volumes of pending orders, for example, as in the picture.
Forex or the stock market? What is the difference?
1. A difference is felt immediately, with study of the terms of trade on the broker's website. I did not meet minimum deposit of less than 30 000 rubles. In a company where I opened my expense - 50 000 rubles. In the forex strap much lower DC willing to open accounts, ranging from $ 1.
2. Taxes. When trading in the stock market your broker is your tax agent, ie pay taxes on profits without your participation, you can not worry about it, everything officially. It is possible to ask for an income statement.
DC does not give the luxury of taxes in general few people remember, and adequate information is simply no (tried to fix). Do you want to - pay, do not want - do not want.
3. Opening an account takes minutes on the strength of the forex market 5 (for more details, you are interested).
The stock opened the score 2 weeks! Please request a broker's website, the next day I called back, have specified the required data. Later came SMSka address Ulyanovsk office, it was necessary to sign the documents. Ok, I went to the office. The closer to the address specified in the SMSke, the big question tormented me. Outskirts of the town ... The private sector, gardens ... Asphalt ended ... A strange place for office brokerage firm! I still got to the end and saw ... a garage! In fact, some in the garage and caretaker jersey! Office of course was not there.
Call (sent in SMS), specify the address was a mistake, the office was located in the city center. Here is the beginning!
Signed a document on the same day did not work (pages 80 to sign!), The staff is something messed up, had come 2 times, so delayed the whole procedure.
4. Now only shopping moments. Trading volumes. In the forex they do not exist, or there is a parody (tick volume, ie the number of ticks for a certain period of time). In the stock market you can find the real volume of transactions. This information can serve as a good filter for many trading systems.
5. Limit orders. The essence of these proposals radically different compared to the sites. Exposing such a warrant on forex, you will get a sale at the price of the bid, and buy at the ask price.
Exposing such an order on the stock market, you become a so-called "liquidity provider", your application can see all the other traders. When the price level will reach your application, make a direct deal, meaning you sell the trader, who has decided to buy "the market", he buys at the ask price, and you are at the same price sell! The same applies in the opposite direction. Thus, you can trade without a spread, at the best prices. Only this chip can turn a losing strategy in the forex profitable for the stock market.
6. Glass. With it, you can real-time tracking of transactions taking place, to see at what levels are large volumes of pending orders, for example, as in the picture.
Well clearly that the price is 118,840 pending limit order to buy 1,470 contracts. Another plus stock market!
7. The execution speed. Any forex broker brakes. I do not know why this happens, but the deal opened significantly longer than on the stock exchange.
8. Costs. If you use limit orders, the costs on the stock exchange in times less than in the forex. When trading futures on currency pairs, you can not worry about the swap, they are not.
9. Shoulder. (What's this?) The DC comes to 1 to 1000. In the futures up 1 to 20 (approximately), is subject to change during periods of increased volatility and holidays up to 1: 1 Open positions with a shortage of funds will be closed automatically. All lovers of the martingale in the stock market simply do nothing, as well as lovers of locking, it is impossible.
10. Opportunities. One thing is when you see the major currency pairs, you can follow the news and analyze graphs. It is quite another thing when you have access to the stock, futures on stocks, on the currency for goods, financial instruments can trade bonds, spreads, options.
As a conclusion, I can say that, despite the difficulties in opening an account, trade on the stock exchange is able to provide more tools for profit, but this option is suitable experienced traders, for whom the software to understand and exploit the potential will not be difficult. A beginner can try their hand at forex trading, where the minimum deposit is smaller, easier to open an account and trading platform has an "intuitive interface"!
7. The execution speed. Any forex broker brakes. I do not know why this happens, but the deal opened significantly longer than on the stock exchange.
8. Costs. If you use limit orders, the costs on the stock exchange in times less than in the forex. When trading futures on currency pairs, you can not worry about the swap, they are not.
9. Shoulder. (What's this?) The DC comes to 1 to 1000. In the futures up 1 to 20 (approximately), is subject to change during periods of increased volatility and holidays up to 1: 1 Open positions with a shortage of funds will be closed automatically. All lovers of the martingale in the stock market simply do nothing, as well as lovers of locking, it is impossible.
10. Opportunities. One thing is when you see the major currency pairs, you can follow the news and analyze graphs. It is quite another thing when you have access to the stock, futures on stocks, on the currency for goods, financial instruments can trade bonds, spreads, options.
As a conclusion, I can say that, despite the difficulties in opening an account, trade on the stock exchange is able to provide more tools for profit, but this option is suitable experienced traders, for whom the software to understand and exploit the potential will not be difficult. A beginner can try their hand at forex trading, where the minimum deposit is smaller, easier to open an account and trading platform has an "intuitive interface"!
