Write the differences difference between forex and stock market.

The major differences between forex and stock market are as follows −


  • The size of the market is large.

  • It has high leverage as compared to stock market.

  • It has no qualifying requirements.

  • It is less regulated than stock market.

  • It has high liquidity.

  • It is open for 24 hours.

  • The commissions are minimum or zero.

  • The focus is narrow.

  • The buying/selling involves multiple currencies.

Stock market

  • The size of the market is less.

  • It has less leverage as compared to forex.

  • There are certain qualifying requirements.

  • It is more regulated than forex.

  • It has less liquidity.

  • It is open for 8 hours only.

  • The commissions are high.

  • It has wide focus.

  • The buying/selling involves single currency.