Most people have at least heard of equities (stock) trading yet many are still unfamiliar with trading forex (currencies). While it may be easy to understand the idea of investing in large companies you’ve heard of like Microsoft, Facebook, and Apple, most of us are already aware of current events that make the FX market move.
Here are some facts on equities versus FX that you may not have known:
Stocks
Volume
– $3-5 Billion per day on NYSE (World’s largest stock exchange)
Number of stocks
– Around 2,800 companies listed just on NYSE
Trading Hours
– 9:30 AM to 4:30 PM New York Time
Leverage
– 2:1 maximum leverage
Investment size
– Average size of an equities account is $5,000 USD
Tools and research
– Real-time charts and quotes require a paid subscription
Forex
Volume
– Over $3 Trillion per day
Over 90% of the world’s FX volume trades within 7 major currencies, known as the G7 with EURUSD being the most liquid pair
Trading Hours
– 24 hours a day, 5 days a week
Leverage
– Up to 400:1
Investment Size
– Starting balance with as little as $500 USD
Tools and research
– Real-time charts and quotes are free