There is a big comparison between Forex and Stock market. It’s look like a Big Elephant between an Ant. Now i describe about Comparison of Forex and stock.
One of the renowned Stock market of world is New York stock exchange. Here each day about $22.4 billion or U.S $2240 crore transaction occurs. Beside that, the Tokyo stock exchange’s average daily trading is about $18.90 billion or US $1890 million. And the London exchange’s average daily trading is about $720 million, or US $720 billion.
Noticeably it seems a big market for its transaction amount. But its very trivial compared to the FX market. Every day nearly equal to $5 trillion dollar’s transaction occur. Money transfer of this market, which is large in amount takes place among big banks, different institutions and brokers via large electronic system or via internet. A few years ago Forex marketing was limited within big banks and different institutions of various countries, not was in touch of common people. Now with the contribution of technology and better communication system. Forex is now on the doorstep of common people and mediocre businessman.
Structure of Forex and Stock Market
Stock market has its own central controlling organization. Stock market is a central market. But FX market is a decentralized market, it has no central market. Its main hierarchy are the main banks, electronic brooking services, medium and small banks, retail market makers and retail traders of commercial companies. The role of player of this market is played by large banks, commercial companies, government and central banks and single investors.
Read Also: What is Forex & Forex Trading?
At the present time whole world is now on your computer (laptop, notebook),as you can connect worldwide by using internet from anywhere. As a result, Today people can manipulate all their financial activities staying at their home and that’s why they do not need to go abroad consuming a lot of money. The cause is they can earn better than going abroad, staying in their own country. And for this what they need is a computer and internet connection.
A better way to earn foreign currency staying in your own country is Forex trading-the largest share market in the world, and it is much more dependable and risk-free for earning foreign currency. Basically it is the biggest global market for exchanging currency. Even if the word “Forex” is still new to our country, immediately it will be attractive to all. As we started outsourcing lately, similarly many Asian countries has expounded Forex market.