For decades, the stock market has been the undisputed king of the investment world.  Anyone who has had a little bit of money and the least amount of financial savvy has inevitably opted to head for Wall Street and wait for the opening bell.  But of late, the NYSE and stocks in general have come under closer scrutiny.  With relatively recent events like the Enron scandal and the dotcom boom and bust, some investors are looking for alternatives to the stock market. 

Fortunately for the disillusioned, an emerging platform is hiding in the wings, waiting patiently for a few of your investment dollars (or Yen or Euros).  Forex not only offers a viable alternative to supplement or replace stock investment, but currency markets have a number of advantages over the stock market.  If you’re not convinced that currency exchange is for you, read these four ways that forex trading can be fun, and maybe you’ll realize that forex can actually be extremely financially rewarding as well.  Because really, what’s more fun than walking around with a full wallet.

1. The forex market is like 7-11
Most investors who concentrate on stocks fix their workday to the opening and closing bells of the New York Stock Exchange.  But maybe you like to sleep in a bit, or on the other hand, maybe you’d rather work an 80 hour week.  Fortunately for you, the forex markets really never close.  Currency can be traded during American, European, and Asian market hours, which basically means that you can make trades 24 hours a day.  This flexibility not only allows you to work when and how you want, but also allows for a month’s worth of the equivalent NYSE activity to take place in just one week.  If you like action and if you like it at all hours, forex is the place to be.

2. No transaction fees or commissions
Investors in the stock exchange are often shocked to learn that forex brokers typically do not charge any transaction fees or commissions on currency trades.  After being nickled at dimed to death by your friendly neighborhood stockbroker, this can truly be a breath of fresh air.  In general, forex brokers do not need to charge a commission because they are compensated through the bid/ask prices.  This is true even if the transaction is conducted online or over the phone.  As a result, forex trading costs are lower than those of any other market to the individual investor.

3. A simpler set of subjects
The combined number of stocks listed on the New York Stock Exchange and the National Association of Securities Dealers Automated Quotations System currently tops out at more than 8,000.  This overwhelming volume makes it very difficult for the average investor, or even a full-time professional who devotes a career to studying the stock market, to become an expert in each industry that is represented.  By comparison, there are generally considered to be between four and six major currency pairs.   This allows a forex trader to concentrate on a particular pair and quickly gain a certain level of expertise without ignoring the market as a whole.

4. More bang for your buck
One of the most appealing advantages of the forex market is the ratio of leverage that can be reached.  The potential return on an investment in the stock market does not even compare with the leverage that an investor can gain in the forex market.  While the maximum leverage for any given stock is typically 2:1, it is not uncommon for this ratio to reach 400:1 for a currency pair in the forex market.  This huge upside, and the corresponding potential for disaster that inevitably accompanies it, can make the forex market a much more exciting arena for the adventurous investor.

By-line:

Heather Johnson is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information. Heather welcomes comments and freelancing job inquiries at her email address heatherjohnson2323@gmail.com .