Trading costs - Transaction costs in the
Forex market is the difference
between the buy and sell price of each currency pair. There are no brokerage
fees. For both the stock and the commodity markets, there are transaction costs
and brokerage fees. Even when you use discount brokers, those fees add up.
Minimum investment - You can open a
Forex trading account for as little as $300.00. It took $5,000 for me
to open my futures trading account.
Focus - 85% of all trading transactions are made on 7 major
currencies. In the US stock market alone there are 40,000 stocks. There are just
over 200 commodity markets, although quite a few are so illiquid that they are
not traded except by hedgers. As you can see, the fewer number of instruments
allows us to study each one more closely.
