#CommunityAMA Here’s a detailed comparison of the key differences between the forex and stock markets: 📊 Forex vs. Stock Market: Key Differences Feature Forex Market Stock Market What is traded Currency pairs (e.g., EUR/USD, USD/JPY) Company shares (e.g., Apple, Tesla) Market size Largest market globally (~$7.5 trillion daily volume) Smaller (~$100–200 billion daily volume in major exchanges) Trading hours 24 hours a day, 5 days a week (Sunday night to Friday night) Typically 9 AM – 4 PM local time, Monday to Friday (depends on exchange) Liquidity Extremely high (especially in major pairs like EUR/USD) High for major stocks, but less than forex Volatility High, often affected by geopolitical and economic news Variable—can be lower, but spikes with earnings or major news Leverage available Very high (up to 100:1 or more, depending on the broker and regulations) Lower leverage (usually 2:1 for retail investors in the U.S.) Regulation Light in some regions; varies globally Heavily regulated (SEC in U.S., FCA in UK, etc.) Number of instruments Fewer (mostly currency pairs) Thousands (stocks, ETFs, derivatives) Market structure Decentralized (OTC – over-the-counter) Centralized (exchanges like NYSE, NASDAQ) Price influencers Economic indicators, interest rates, geopolitics, central banks Company earnings, news, leadership, industry trends Trading costs Mostly spreads, possibly swap/rollover fees Spreads, commissions, taxes (depending on country) Ownership No ownership—you're speculating on currency value changes Owning a piece of a company (equity) Suitability Popular for short-term traders (day trading, swing trading) Suitable for both traders and long-term investors 🧠 Summary Forex is better for: High liquidity and 24-hour access Short-term, fast-paced trading Trading based on macroeconomic trends Stocks are better for: Long-term investment and dividend income Company-specific analysis Building wealth through equity ownership