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Spot Forex: Forex vs. Shares

Forex vs. Shares

Greater leverage
No middlemen
Buy/sell programs do not control the market
Commission-free*
Same price for broker assisted trades
Trade with real-time profits
*GFT is compensated by revenues from its activites as a currency dealer.

Though shares have been historically viewed as an investment, recent market volatility and instability has led to a more speculative approach to stock trading. As a result, many stock traders are moving away from trading shares of individual companies to trading currencies in the world’s primary market – forex. In addition, the advanced software, greater leverage, and identifiable market trends associated with forex trading have helped fuel this move.

It’s important to remember that both shares and forex trading involve risk. Because forex trading is not conducted on a regulated exchange, there are additional associated risks.



GREATER LEVERAGE

One of the most significant benefits of forex trading is the high amount of leverage that can be used. With GFT, traders can control larger positions with less capital using up to 100:1 leverage. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.

NO MIDDLEMEN

Currency trading is done online by the trader. By trading directly through GFT — a dealer and a primary market maker — there is no one between you, the trader, and the buyer or seller of the currency pair. In the stock market, you may deal with a broker and the exchange, both of whom charge fees and commissions. Eliminating the middleman in currency trading streamlines the process, saving traders time and money.

BUY/SELL PROGRAMS DO NOT CONTROL THE MARKET

How many times have you heard that “Big Business A” was selling “X” or buying “Z,” followed by an explanation of how the entire stock market will be affected by the transaction? The stock market is very susceptible to large buys and sells. Forex, on the other hand, is the largest, most liquid market in the world, almost eliminating the likelihood of any one fund, bank or company controlling a particular currency. This extreme liquidity stems from the many large participants from around the world, including banks, futures commission merchants (FCMs), hedge funds and governments.

COMMISSION-FREE

With forex trading, what you see is what you get: no commissions, no clearing fees, no exchange fees, no government fees, and no brokerage fees. All you pay is the spread. This is because GFT is compensated by revenues from its activities as a currency dealer, including proceeds from converting, buying, selling, holding currencies and interest on deposited funds and rollover fees.

SAME PRICE FOR BROKER-ASSISTED TRADES

With GFT, you don’t have to worry about extra charges. There is no premium for placing orders regardless of whether you call in your forex orders, or use market orders, limit orders, stop orders, or even contingent orders. Ever wonder why a broker charges you more if they have to guarantee you a price than if you give them a market order with no price qualifier? It’s time to stop worrying about it. Trade the currency market with GFT.

TRADE WITH YOUR REAL-TIME PROFITS

Ever wished you could leverage the profit you made on a stock to buy a little more of the stock? In currency trading you can do just that. Add to your positions using your realized profits. As you trade more, you can experiment with pyramid trading strategies. The possibilities are endless.

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SPOT FOREX
WHAT IS SPOT FOREX?
 24-HOUR ACCESS TO THE WORLD
ADVANTAGES OF TRADING WITH GFT
 AVAILABLE CURRENCIES TO TRADE
 MARKET INFORMATION SHEETS
FOREX VS. OTHER MARKETS
 FOREX VS. FUTURES
 FOREX VS. SHARES
HISTORY OF FOREX
 BRETTON WOODS ACCORD
 THE FREE-FLOATING SYSTEM
RESOURCES
 GLOSSARY OF FOREX TERMS
 GUIDE TO WORLD CURRENCIES
 DEVELOPED COUNTRIES
 EMERGING COUNTRIES
 LATEST HEADLINES
 ECONOMIC CALENDAR
 GFT RSS NEWS FEEDS
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