| Forex vs. Equities Advantages |
| Advantage |
FX Market |
Stock Market |
| 24-Hour Trading |
Yes |
No |
| Commission Free Trading* |
Yes |
No |
| Rapid Execution of Market Orders |
Yes |
No |
| Short-Selling without an Uptick |
Yes |
No |
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24-Hour Market
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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 (client 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.
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Commission Free Trading
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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.
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Rapid Execution of Market Orders
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FXCM Asia prides itself in striving to offer some of the best execution possible in all market conditions. FXCM Asia offers rapid execution and will make best efforts to fill your trade at the price requested. 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, although spreads may vary depending on market conditions.
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Short-Selling without an Uptick
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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.
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Equity Market: Making the Transition to Forex
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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.
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