Forex Vs Other markets

Let’s compare the characteristics of other markets to the forex market.

Spot Forex
trading products

CFD’s or Contract for Difference

We trade on the spot forex market, a market that has high liquidity, high volatility and is open 24 hours a day.

The automated trading software can trade on other markets too, but there are drawbacks. They will be listed below.

Stock exchanges can be traded automatically, but:

  • They have low liquidity, so trade execution would be at risk.
  • They have daily opening and closing bell, so stock prices can be manipulated by releasing news after the bell. This gives uncertainty for trading prices.
  • They are sensitive to emotional market moves, therefore less predictable.

Index and commodity CFD’s can be traded more easily as they are offered as a CFD by FX brokers.

crypto currency trading

Trading in the cryptocurrency market can be very lucrative due to high volatility. Although this would very much depend on the market sentiment.

The biggest drawback for crypto trading is the lack of liquidity or volume. Trading accounts with small balances usually don’t have this kind of problem, but when trading a massive capital, you start hitting brick walls very soon.

One trade mis-fire could cripple an account. An account trading on this asset would have to be monitored by a team of professionals around the clock, literally 24/7. And if a trade would go wrong, hope new trade flows pick it up before the price moves sharply against it.

Not something to call secure enough to trade on.

Any asset can be traded, options, futures, commodities, you name it... As long as a trade yields a commission, CBM could implement it in its matrix.

When selecting the best market to trade, a right informed decision needs to be made. Currently, that's still Forex!
Trading Forex and CFD's is high risk. Losses can exceed deposits.