Which is better, forex trading or stock trading is an important question in the financial world and we must talk in detail about this world and present the advantages of each field and then make the most appropriate decision for us
CFD trading is dangerous globally, societies and individuals unless there is experience in this field, so if you are a beginner, you should consult a financial expert, as these markets contain a lot of money that is traded, which amounts to more than a trillion dollars of trading volume This is a huge and high liquidity that is exchanged in the world of forex, stocks and contracts for differences, so do not forget to choose a globally reliable company and trading platform, whether you are planning to trade forex or stocks
There is no doubt that the field of trading is one of the most profitable fields, whether trading foreign currencies known as forex or stock trading
First, let's start with the global financial markets, where trading foreign currencies known as forex is one of the most popular types of trading
?So what is forex
Forex means foreign exchange trading, which is the buying and selling of currencies, for example: buying the dollar currency against the euro or vice versa, and profit is the price difference that occurs between currency pairs and commodities. AUD, JPY, CHF, gold, silver and other commodities, metals and indices that can be traded via online trading platforms
How are trading operations done?
There are special platforms that play the role of a mediator between the seller and the buyer. When we want to enter a deal, the broker processes the deal and sends it to the bank. This type of account is called ECN. There is another type of account that does not pass deals through the bank, but the broker itself executes the deals, meaning that he buys from you and sells to you. This system is called DD, short for Dealing Desk
And here is another type that is symbolized by NDD, which means NO Dealing Desk, meaning that it does not buy from you or sell to you, but rather passes deals immediately with the MARKET
This type of account is divided into two parts. The first is STP, an abbreviation for Straight Through Processing. This type of account works on executing your transactions instantly with banks or Akbar Broker.
The second section stands for ECN, short for Electronic Communications Network
Where ECN-powered companies connect you directly to the main trading network so that you can trade buy and sell with all banks and get the best possible prices
The field of forex is characterized by the fact that you can profit from buying and selling, and that you can trade in any amount, even if it is small, and this is because of the leverage that may reach 3000 per dollar, and this in itself is a dangerous thing if you do not manage strict capital
But one of the things that are not good in the field of forex is that currencies do not fluctuate as much as what happens in stocks. Also, forex is suspected of being forbidden or halal in Islamic law because of the leverage of money and many other things such as the interest of overnight deals, and if you want to avoid the financial leverage, you will not make a profit Good unless you have a capital of more than 100,000 dollars
If the bottom line is that trading forex with leverage may make you profit a lot, even if the capital is small for all of you, you will fall into suspicion and also you may lose your capital because of the leverage, unless you commit to strict capital management and if you want to avoid leverage and avoid suspicions, you need a large capital
Forex trading means an exchange between a major pair, which is the first symbol, and the other pair is the secondary marriage, meaning we have the EURUSD pair, the euro here is the major pair and the dollar is the secondary pair. Selling the euro-dollar pair means that you bought the dollar and sold the euro, and foreign currencies are traded through special platforms, the most famous of which is the mt4 platform, and there are brokers who have more than one trading platform
Let's move now to trading foreign and international stocks such as Amazon and Apple shares for phones, pharmaceutical companies, real estate and others, which is a strong opportunity for investment and profit
Trading company shares is a great option and does not require a large capital or financial leverage, and this means that you can get out of the forbidden suspicions, but you have to search for permissible and permissible shares in Islamic Sharia.
And you can start even with $1,000 and without leverage because the stocks move a lot and the stock price may multiply dozens of times
But the only drawback in stocks is that you earn from buying only, and not as in forex and global currency trading, where you can profit from buying and selling
My personal opinion is that stock trading is better than forex trading, and the reason is that stocks can be traded without leverage and avoiding suspicion
Stocks are characterized by the fact that you are able to actually own the shares and not just fictitious transactions, as happens in the forex field
In order to enter the stock market, whether global stock markets or the US, you must choose an appropriate broker, and the interactive broker platform is one of the most famous platforms for trading US stocks
There is a similarity between trading bitcoin and stocks, as bitcoin trading does not require large capital or leverage, but you can start trading bitcoin with a capital of $ 1,000, but cryptocurrencies are more dangerous than stock trading because of the great fluctuation in the prices of cryptocurrencies and among the most important brokers and platforms Cryptocurrency trading is the binance platform, which allows you to trade 24 hours a day, seven days a week, but if you are a beginner in the cryptocurrency market, you should dig deeper before choosing currencies to buy and store, because some currencies are weak currencies that aim to buy, sell and profit, and quickly those currencies lose their market value Because it is not strong against famous currencies and strong projects, and unlike foreign currencies, it is subject to the central bank, but cryptocurrencies are decentralized currencies
Cryptocurrencies are new in this vast digital world and a subject of controversy in the middle of the financial world, so you have to learn well before taking on this adventure. Those strategies are for quick trading and the other for long-term investing
It is worth noting that most traders lose and this is due to lack of experience and lack of follow-up to economic news. News plays an important role in the price movement up and down and also because of the financial leverage (margin) and because leverage is a double-edged sword, you have to choose a margin suitable for your style and your capital
Here are some tips that will help you get started in this field
Choose a reliable broker and company to work with
Create accounts on technical analysis sites such as the tradingview site, which contains many currencies, stocks and metals, which you can analyze, follow the chart and technical analysis accurately and professionally.
Thus, we have reviewed the pros and cons of trading forex, stocks and cryptocurrencies in the foreign market. Do not forget that you can trade Saudi and Gulf stocks, as they are also very famous in the Arab world.
Achieving profit in the money market is not impossible, but it requires patience and experience, working hours throughout the week, and seeing everything that is new. You can achieve a million dollars if you master the field and the field may not suit all individuals and things get out of account and control and cause losses, so if you do not find that the field of money trading In the foreign and local market is suitable for you, do not enter, but there is no objection to experiencing this world and start exchanging currencies and trading them and taking an idea and then making the final decision and the appropriate mediator for you, so benefit from the experiences of others, as they will shorten the distances for you
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