Understanding Forex
Forex is a shorthand for foreign exchange, which is when fiat money is being traded. This trading market is used by all kinds of people and companies. Tourists, businesses that spread over the border, and governments all need to exchange currencies daily; as a consequence, the exchange-traded funds are usually giant within the market.
The rate at which currency pairs are converted is known as FX rates and is primarily dependent on commodity markets which various trading software track and display to users.
Any FX trading software usually focuses primarily on the negative balance protection of every trading account within its system.
How does the forex market fare up against the stock market?
The foreign exchange market and forex traders a lot of the time is compared to the stock trading community. And it is reasonable to say that forex trading is, in actuality, much more profitable than stock trading, but there are risks involved. You can accumulate the same profits from forex trading that you could gain if you were to trade stocks.
Although forex and stocks are similar in their profit margin, forex traders are much more well off because of how much faster you can accumulate the same profit. There’s a negative side to this, though; a forex trading platform is a very volatile ecosystem where accounts lose money on a daily and people are left in financial ruin after an incorrect transaction. Still, in an environment where losing money rapidly is the norm and significant risk is involved, there are great opportunities to be had if you have the knowledge to abuse the market.
Is Robinhood viable for forex traders?
Robinhood offers no forex trading services; therefore, it isn’t a good choice for dedicated forex traders. Although, open-minded traders who value flexibility would find the Robinhood app a great investment strategy as it provides clients with a myriad of assets to trade with. For example, the Robinhood crypto sphere is quite strong and has a lot of digital asset options that you could take advantage of.
Which service is best to host retail investor accounts on?
Retail investor accounts are most profitable in those trading platforms which provide their users with mobile trading and a variety of trading assets. For this purpose, Robinhood stands on top as it not only has a very simple-to-navigate mobile app but an interesting assortment of assets that you can use to trade with. Additionally, Robinhood has no withdrawal charges, which is a great plus for people who want to trade quickly and seamlessly.
Forex.com, on the other hand, provide its clients with only foreign exchange services and trading CFDs. Although, it does have a mobile app which is a fact to take into consideration when choosing between these two trading platforms.
Currency pairs
When choosing a broker, it is crucial to know what broker offers what currency pairs and what foreign currency you can easily take advantage of. Therefore, currency pairs are a reliable way for a broker to differentiate themself from other brokers.
Forex.com
Forex.com, being a dedicated forex broker, boasts over 80 currency pairs and additionally allows its users access to trading CFDs. Unlike Robinhood, Forex.com doesn’t offer its clientele the benefits of stock or cryptocurrency trading platforms, which evidently is a small disadvantage and prevents Forex.com clients from having the same flexibility as a Robinhood client would.
Robinhood
On the other hand, Robinhood does what Forex.com doesn’t. You could call Robinhood clients jacks of all trades as Robinhood offers many services like trading in stocks, ETFs, Fractional Shares, Securities trading, hedge trading, and even cryptocurrency! This factor is especially advantageous to retail investor accounts as they can easily jump in at any moment with mobile trading and trade whatever asset is most profitable at the time.
Unique features
Any trading platform has its own set of unique commodities and benefits that it provides to its users. In this section, we will go through them.
Forex.com
Forex.com offers direct market access making it a lot easier for forex traders to navigate the market.
Moreover, Forex.com also provides FX enthusiasts with business news which is a very important feature of any trading platform that helps cultivate the future generation of traders. Although, Forex.com newsfeed isn’t the only way it teaches its users.
Forex.com also hosts a variety of informational webinars, educational videos, and financial advice libraries that, if used correctly, can bring forex traders a boost in profits.
Robinhood
First of all, we have to mention the greatest feature Robinhood offers its users – the ability to buy crypto. This is another great addition to Robinhood’s library of assets and financial instruments.
Moreover, Robinhood supports margin trading when you use an upgraded account. Just for $5 a month, you can greatly increase your profits by borrowing funds.
