Forex vs. Equities
For investors and speculators using the Internet as an investment tool will find that the Forex market offers several advantages over equities trading:
| | Foreign Exchange Trading | Equities Trading |
| Leverage | 200: 1* | 2:1 |
| Liquidity | Daily Volume: $1.9 Trillion | Limited Liquidity |
| Commissions | No Commissions** | Commissions and Exchange Fees |
| Trading Hours | 24 Hour ,5.5 days per week Active Market | 7 Hours with Limited After Hours |
| Trading Volume | 1 week Forex volume is equal to all of 2003 reported volume of The New York Stock Exchange (NYSE) | |
* 200:1 is the entry leverage value. Since most brokerages will have margin calls set at different level, exact leverage may vary.
** The traders cost of doing business is called the Spread. It is the difference between the bid and the ask price on your chosen currency pair.
Trading in the off exchange retail foreign currency market is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The
possibility exists that you could sustain a substantial loss of funds and
therefore you should not invest money that you cannot afford to lose. Nothing
in this presentation is a recommendation to buy or sell currencies and
Interbank FX is not liable for any loss or damage, including without
limitation, any loss of profit which may arise directly or indirectly
from the use of Interbank FX tools or reliance on such information.
