The daily volume of the Forex market surpasses $4 trillion. By simply comparing it to the $25 billion a day trading volume of the New York Stock Exchange, you can easily see how enormous the Forex market really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Unlike other financial markets, the Forex market is neither bound by a physical location nor a central exchange. It is deemed an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is continuously run electronically, within a banking network.

Forex Market Advantages versus The Stock Market

Advantages

Forex

Stocks

24-hour Trading

YES*

NO

Commission Free Trading

YES

NO

Continuous Trading (No Halt Trading)

YES

NO

Short Selling Without Authorization

YES

NO

Leverage

200:1**

5:1

Demo Practice Account

YES

NO

*Subject to available liquidity, the trading desk is open from 5:15 p.m. (ET) Sunday afternoon through 5 p.m. (ET) Friday afternoon.

**Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.