Trading foreign currency has advantages over equities and futures trading. The global, around-the-clock nature of the Forex market gives traders the unique advantage of reacting to news and worldwide developments as they happen. Exchanging currencies in real time, on the largest trading market in the world, allows Forex traders to manage their trades as global events affecting the Forex market occur. Quite often, equities and futures traders must wait until their markets open for business before they can see how world events affect their investments and trading. With currency trading, Forex traders frequently manage their investments without having to wait for a market to open.
| Forex Trading | Equities Trading | Futures Trading | |
| Typical Leverage | 200:1** | 2:1 | 15:1 |
| Liquidity | Daily Volume: $3 Trillion | Limited Liquidity | Limited Liquidity |
| Commissions | No Commissions* | Commissions and Exchange Fees | Commissions and Exchange Fees |
| Trading Activity | 24 Hour Active Market | 7 Hours/Limited After Hours | 7 Hours/Limited After Hours |
*The FCM and RB are compensated for their services through the spread between the bid/ask prices.
**Without proper risk management, this high degree of leverage can lead to large losses as well as gains.
**Without proper risk management, this high degree of leverage can lead to large losses as well as gains.
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