facebookForex Vs Stock investment. What are the pro and cons and which one is a better choice for trying to earn capital faster if one have limited capital? - Seedly

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Peter See

13 Jan 2020

Stocks

Forex Vs Stock investment. What are the pro and cons and which one is a better choice for trying to earn capital faster if one have limited capital?

Discussion (7)

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Forex is a double-edge sword, the faster it had the potential to grow your capital, the larger it had the potential to magnifiy your loss

Forex offer higher leverage but it will wipe out your account if your account size is small. You will get margin called often in forex if your account size is small.

If you are going for fastest capital growth, forex is the fastest to wipe/grow your account.

Billy

13 Jan 2020

Development & Acquisitions Manager at Real Estate Private Equity

Forex

Pros

Grows capital at a faster pace due to pips

More predicatable on day-to-day basis with technical indicators

24/7 trading

Cons

Lose capital at a faster pace as well

More volatile as compared to stocks, must monitor closely especially when US market is active due to announcements

Very news-driven

Gains purely from capital

Stock

Pros

Easier to valuate as compared to Forex

Provides a source of passive income (if selected dividend-paying stocks)

Cons

Chance of bankruptcy (if company closes down)

Limited trading hours

Bjorn Ng

13 Jan 2020

Business Analyst at 10x Capital

If capital is earned so easily, everyone who have dived into it already. And even if you can earn capital faster, the opposite also stands true: you can lose it even faster.

Forex is just speculation IMO. Whereas stock investing is buying into businesses with long runway, putting your $ inside and just letting it compound the next few years.

FOREX. The voltality there is high and you are able to employ a large leverage to magnify your gains...

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