Spot Forex: Forex vs. Shares
Forex vs. Shares |
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| *GFT is compensated by revenues from its activites as a currency dealer. |
Though historically viewed as an investment, recent volatility and instability in the shares markets have led to a more speculative approach to stock trading. Many stock traders now are moving away from trading shares of individual companies to trading currencies in the world's primary market - spot forex. The advanced software, greater leverage and identifiable market trends associated with spot forex trading have helped fuel this move.
Remember, both shares and forex trading involve risk. Because forex trading is not conducted on a regulated exchange, there are additional associated risks.
GREATER LEVERAGE |
| The high degree of leverage that may be used is one of the most significant benefits of spot forex trading. With GFT, you can control larger positions with less capital, using up to 100:1 leverage. Please note that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. |
NO MIDDLEMEN |
| Currency traders trade online. By trading directly through GFT - a dealer and a primary market maker - there is no one between you and the buyer or seller of the currency pair. In the stock market, you may deal with a broker and the exchange, both of whom charge fees and commissions. Eliminating the middleman in currency trading streamlines the process, saving traders time and money. |
BUY/SELL PROGRAMS DO NOT CONTROL THE MARKET |
| You hear it all the time: "Big Business A" was selling "X" or buying "Z," followed by an explanation of why the entire stock market will be affected. Unlike the stock market, which is very susceptible to large buys and sells, spot forex is the largest and most liquid market in the world, virtually eliminating the likelihood of any one fund, bank or company controlling a particular currency. This extreme liquidity comes from large participants all over the world, including banks, hedge funds, futures commission merchants and governments. |
COMMISSION-FREE |
| In spot forex, what you see is what you get: no commissions, no clearing fees, no exchange fees, no government fees and no brokerage fees. Because GFT is compensated by revenues from its activities as a currency dealer, including proceeds from converting, buying, selling, holding currencies and interest on deposited funds and rollover fees, all you pay is the spread. |
NO EXTRA CHARGE FOR BROKER-ASSISTED TRADES |
| When you trade spot forex with GFT, there's no need to worry about extra charges. We charge no premium for placing orders, regardless of whether you call in your order or place it online. There are never extra charges for limit orders, market orders, stop orders or even contingent orders. |
TRADE WITH YOUR REAL-TIME PROFITS |
| Wouldn't it be nice if you could leverage the profit you made on a stock to buy a little more of the stock? With spot forex from GFT, you can do just that! Add to your positions using your realised profits. As you trade more, you can experiment with pyramid trading strategies. The possibilities are endless! |
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