Difference Between Forex Trading and Stock Market Investing

Know the difference between forex trading and stock market investing and how do they really works! What is the difference between forex trading and stock market investing and which is profitable? A reader of daily investing asked this question because he had experience in stock market investing and wants to dive his interest in forex trading.

Let us answer this question “what is the difference between forex trading and stock market investing?” A forex trading for beginners might be hard because of technical aspects. But stock market investing is easy to explain and understand.

Forex Trading Vs. Stock Market Investing

Forex Trading is the process of buying and selling currency. Some forex traders prefer to trade online using trading platform thru forex brokers. There are currency pairs to trade and the most popular are EURO vs. US Dollars (EurUSD), Great Britain Pound Vs/ US Dollars or GBPUSD, USDJPY or US Dollars vs. Japanese Yen. A trader may earn by PIP or price in points. Some forex trader may earn when they buy forex in low price and sell then at high price. On the other hand, stock market investing is the process of buying stocks or shares in the company. The ones who bought shares are called “stockholders”, or “shareholders”.

Which is profitable? forex vs stocks which is more profitable? It depends on the trader or investor. What is the forex market and how is it different? Forex market is the market place for currencies while stock market is the marketplace to buy stocks.

Image Credit: Joe Bailey via Flickr CC 2.0 – forex trading in laptop

Is trading forex like trading stocks? They are in the same process when trading, however, when you buy stocks,, you are a stock holder.

If you have any questions regarding stocks and forex trading, just leave a comment below or ask us via email in the contact page.