The Desirability of the Forex Market Compared to the Real Estate and Stocks Markets

Apr 3, 2018 by

The high risks involved in trading can often cause people to question the profitability of forex. Most people who are not informed about the forex market often assume that it is akin to a gambling business. This cannot be farther from the truth, however. Forex trading is just like any other business that is predominated by risks but also has scientific bases of management. Among the business alternatives that are closest to forex trading are the stocks market and the real estate market.

On a fundamental basis, the three businesses operate on a premise of waging monetary investment for the promise of returns. In order to understand how attractive forex trading is compared to stocks and real estate, we must consider the core aspects of forex that sets it apart from the other businesses.

Key Factors That Underpin Forex Trading

  1. Lesser Barriers to Entry. The forex market is barely competitive in the strict sense of the concept. There is not exactly any competition in this market other than competition with the market forces themselves. This is one aspect that the forex market shares in part with the stocks and real estate markets. For the real estate business, however, there is a sense of competition where investors might be competing for funding from the same banking institutions. This is also fairly relevant in the stocks market though not in an intensified manner. For forex trading, only a few resources are necessary to invest and you can always register a forex account and start trading.
  2. Flexibility of The Business. Forex trading is a very flexible business that can be done at any time. The forex market runs for 24 hours every day and traders are free to trade whenever they like. This is not exactly possible for real estate or the stocks market. While you can regularly check the performance of the markets, you cannot trade with the same intensity as you would in a forex market. This makes the stocks and real estate markets more passive than the vibrant forex market.
  3. Less complicated. The forex market is not as complicated as the real estate or stocks markets. This is because there are only a few established commodities of trade. As long as a trader has the right currency pairs, the only other issue of importance is to do an analysis. The stocks market, on the other hand, is quite elaborate and involved. There are so many investment opportunities to choose from. Following stock movements also takes much more specialized skills. The real estate business, on the other hand, involves the direct interaction with financial institutions. This can be intimidating for some.

Are Stocks and Real Estate Better than Forex?

Clearly, most people prefer the forex business for the good reasons listed above. But this is not to mean that real estate and stocks market have no pull to prospective business-people. In fact, the two business have enthusiasts who would rather take part in no other business. The main difference between the forex business and the two, however, is the relevance they each have among the general business-minded population. For most people who want a quick and reliable income, the forex market presents a low competition and less complicated option to venture in.

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.