If I have 5,000 USD and, with all skills and risks being equal, how much profit can I get from Forex vs. stock trading?
You will get much more. Here are the reasons:
- Liquidity: Forex liquidity is the top market with $5 trillion transactions a day.
- Fee: for stock, you pay much more fee in and out a position, but in Forex the spread is thin, to be specific like $5 for each $100,000 transaction.
- Swap: overnight swap in Forex is much lower.
- Leverage: some Forex providers go up to 1:2000.
Cost of a transaction: with Forex, you can start pretty much with 5k; in stock, maybe you can buy 100 shares of blue-chip that limit your possible gain.
Regards,
Will Vu - Forex Investors since 2006
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Very dangerous to trade leveraged. Risk control must be the top prio.
Totally agree. Risk management is the key