In what difference between the share and currency markets?
Now on the Internet are a lot of advertizing about earnings in the market Forex. It and is unsurprising, Forex - business - very profitable business for the companies. But why advertizing of share brokers at whom it is possible to trade and earn decent money with the minimum risks too is not so widespread?
Not so profitable just broker business, however it is more reliable for simple traders. Why?
I will tell you everything on points.
The first - entry into the market. As already many heard, at trade in the market Forex your transactions remain in the dealing center and on any exchanges do not get. At the expense of this fact and at the expense of thousands of merged clients the dealing Forex centers get huge profits. Therefore they are directly interested in draining of the clients.
With the share broker everything is absolutely differently. He is only an intermediary between the trader and the exchange for what receives the small commission in the form of percent from the transaction. If the broker does not bring the warrant to the market and will act as the second party in the transaction, it is incriminated as fraud. Therefore brokers work honestly and are interested in successful trade of the traders. As the more successfully the trader trades, the more commission charges will be received in the future by the broker.
The second - an operating mode. Forex works round the clock from 00:00 Mondays to 23:59 Fridays that sometimes forces hapless traders to stare in the monitor in hope on though some profit day and night.
The stock exchange works from 10:00 till 18:00 (there are only minor changes, is one hour more or one hour less). It allows to distract from work and not to overload itself.
The third - risks. On Forex risks are huge, the companies give to the clients an opportunity to trade with credit shoulders to 1:1000. And it too most what to be on the razor-edge, one sharp movement - and you or earned much, or lost everything.
In stock market everything is quieter. Business is done a small shoulder or in general without it. At such approach you hardly lose more than 20% of the capital even if one of the enterprises of your portfolio is declared bankrupt that happens extremely seldom.
The fourth - depth of the market. Very important tool for the analysis of the current provision of this or that asset. At the exchange it is called “Glass“. In it we see applications of other investors and traders and we can estimate on its basis where the price will go further. If at sellers volumes it is much bigger, the price most likely means will fall if there are a lot of applications of buyers, then the price will grow.
On Forex “Glass“ is inaccessible to small traders, this tool of the foreign exchange market is seen only by large players - banks, investment and hedzhfonda. And the trader sees only the schedule of jumps of the price. And it is a serious shortcoming in Forex - trading.
Well, and the last - the fifth. Somehow strange turned out that all previous four points were in favor of stock market. And the fifth point - is not present. Here I would like to tell a couple of words about taxation . In stock market all traders from the income are obliged to pay a tax - 13%. On Forex such tax should not be paid, however it it will be actually simple there is nothing to pay, according to 95 - 97% of traders lose the money.
Here, it seems, and all. Considering all these factors, I also passed to trade on stock market. Ah yes, still forgot.
The minimum sum for trade in stock market - 1000 dollars. On Forex it is possible to begin also with 10 units of the American currency.