FXCM - What's now?
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.00% 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 high risk of losing your money.
- Difference of Forex and Equities
- Forex market is opened for 24-Hours a day
- Forex trading is Commission Free
- Rapid Execution of Market Orders
- Short-Selling in Forex without an Uptick
- Equity Market: Making the Transition to Forex
Difference of Forex and Equities
FXCM as an online Forex and CFD broker, offers mainly Forex currency pairs for trading, and Forex market is also the largest and the most popular market among online investors.
Some investors may be thinking about investing in Forex or Equity markets, but there are some clear motives to invest in Forex market rather than the Equity markets.
See the table below first.
|Advantage||FX Market||Stock Market|
|Commission Free Trading||Yes||No|
|Rapid Execution of Market Orders||Yes||No|
|Short-Selling without an Uptick||Yes||No|
By referring to the table above, you now have the idea of how Forex trading is better than Equity trading.
Let’s the case of FXCM, how the Forex trading with FXCM is a great option for investors.
Forex market is opened for 24-Hours a day
The Forex market is a seamless 24-hour market.
The FXCM dealing desk is open from Sunday at 5:15PM EST until Friday at 4 PM EST (customer service is available 24/7).
With the ability to trade during the U.S., Asian, and European market hours, traders have the advantage of customizing their own trading schedule.
Forex trading is Commission Free
FXCM charges no commission or additional transactions fees to trade currencies online or over the phone.
Combined with the tight, consistent, and fully transparent spread, Forex trading costs are lower than those of any other market.
FXCM is compensated for its services through the bid-ask spread.
By using FXCM’s Mini account type, you can also decrease the trading cost and risk exposure at the same time.
Rapid Execution of Market Orders
FXCM prides itself in striving to offer some of the best execution possible in all market conditions.
FXCM offers rapid execution and price certainty on every market orders under normal market conditions.
On the FX trading station, traders execute directly off real time streaming prices.
There is no discrepancy between the displayed price shown on the platform and the execution price to enter your trade.
In addition to offering rapid real time execution, FXCM maintains fixed spreads 24 hours a day.
Short-Selling in Forex without an Uptick
Unlike the equity market, there is no restriction on short selling in the currency market.
Trading opportunities exist in the currency market regardless of whether a trader is long or short, or which way the market is moving.
Since currency trading always involves buying one currency and selling another, there is no structural bias to the market.
Hence, a trader has an equal access to trade in a rising or falling market.
To help traders follow the market trend, FXCM provides Economic Calendar for fundamental analysis.
Equity Market: Making the Transition to Forex
Equity markets can be used as a key indicator for movement in the Forex market.
As technology has enabled greater ease with respect to transportation of capital, investing in global equity markets has become far more feasible.
Accordingly, a rallying equity market in any part of the world serves as an ideal opportunity for all, regardless of geographic location.
The result of this has become a strong correlation between a country’s equity markets and its currency: if the equity market is rising, investment dollars are coming in to seize the opportunity.
Alternatively, falling equity markets will have domestic investors selling their shares of local publicly traded firms only to seize investment opportunities abroad.
To learn more about transitioning from trading equity markets to trading Forex, contact the FXCM staff today.