Comparison between Stock & Forex – Which one suits you better?

Today we will take a look at the differences on stock exchange and forex trading, on a cost wise aspect to see which financial market would suit you better and whether you are fully aware on the cost of both markets.

As you see from the table above, Stock trading broker (Full service) would normally charge for a 1% to 2% brokerage fee of a client’s managed assets. For example, Bob wants to buy 100 shares of Company A at $40 per share, Bob would need to pay $80 to the broker for brokerage fee ($40/share x 100 shares = $4,000, $4,000 x .02 commission = $80). This is also known as commission in stock trading.

On the other hand, spread would be the only fee that you would be paying when trading forex with Hirose Financial. Let’s say we traded the same amount as Bob and opened 4 standard lots in USDJPY (400,000 units). And the spread for this order would be $25.

Take a look at the table above, the difference between $80 and $25 might not seem much at the beginning, but when you start to place more trades along the way, the fees will be multiplied and the difference between the two will become obvious. At the end, you are trading to make money and why would you pay more for something that has a cheaper option?

If you are interested in trading forex with Hirose financial, contact us now!

If you are thinking to start trading forex, contact us now! Or if you want to know anything about forex trading, contact us now!

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