Stock Exchange vs. Foreign Exchange

Philippines
May 30, 2010 4:08am CST
I have an idea about Foreign Exchange but my knowledge is not enough. So what exactly is Foreign Exchange (Forex)? What exactly is Stock Exchange? I told my dad that I'm planning on engaging in Forex, but he and my brother said that I should choose Stock Exchange over Forex. Why? is it easier? I don't really know anything about Stock Exchange, but I'm interested. They said that if I want to earn money from something like that, don't use Forex, use Stocks. What's the difference between the two? Which is better? What do you suggest?
7 responses
• United States
30 May 10
well to be completely honest with you if you don't know anything about the thing your investing in i suggest you stay out of there but if you do research know what your doing and positive you will have a good income from it then i suggest you go for which ever makes more and you understand more
1 person likes this
• Philippines
30 May 10
Thank you for the advice dragon. But that's why I'm asking you guys about it, because I wanted to try it. I wanna learn more about stock exchange and forex before investing some money. Happy mylotting. ;)
1 person likes this
• United States
30 May 10
try it if you market correctly you can make good earnings
@divitiae (193)
1 Jun 10
If you never tried anything you don't already know you could prove if there is aprori knowlege.
@CJscott (4184)
• Canada
30 May 10
Stocks is partial owner ship in companies. Their value is completely reliant on the companies performance. Foreign Exchange is trading money from different countries at the right time to make a profit. Both have their pluses and minuses of course, stocks are more reliable. Forex is finicky, but you can make more money in a shorter amount of time if you are good at it. Both have an expensive learning curve, and stocks are better for a long term investment, whereas forex is better for money tomorrow.
• South Africa
30 May 10
I forgot to mention and that is with forex you can see what you are earning daily plus you can either withdraw the profit daily or leave it to rollover till the time period has finished. I withdraw some every few days until i have my investment back then leave the rest to rollover till the period has finshed which is usually either 120 days or 200 days it depends on sites plus some forex is short term like a week or two, I hope this info was of some help to everyone but feel free to pm me if you wish to know more.
1 person likes this
• Philippines
30 May 10
That explanation is very wonderful and informative, cj. Thank you. I get it now. But I still have a lot to learn about forex and stocks. Justacoolcat, I'm very interested on the info you gave me. Personally, I prefer Forex over stocks. But my dad says that stock exhange is better. So I want to learn more about the two. I just added you as a friend. Hope you can help me out. Thanks! ;)
1 person likes this
@CJscott (4184)
• Canada
1 Jun 10
As always it is my pleasure to be of service. Stocks are more stable and predictable. Of course your Dad would want you to take the safer option. Learn all you can, about each, and make the decision for yourself, either decision you make, I have one very awesome little piece of advice. Make friends with a few people that are VERY good at it, not people that use a system, rather the people that CREATE the systems. Easy to do, Easy not to do, more then worth the effort of the search. With Love and Appreciation. And if you really want to get rich consider joining our MasterMind for a while, we study think and grow rich by napoleon hill, great book, you can sign up at http://30daycleanse.com.
@kosanya (28)
• United States
31 May 10
Forex is a lot more risky than stock trading. You can loose your money very fast. Stocks are more popular bacause there is less risk involved.
@divitiae (193)
1 Jun 10
Its all down to how you invest. Most forex investors use spread betting which is leveraged hence the extra risk but you could spread bet shares to.
• Philippines
30 May 10
stock exchange is like your share in the company, like if you buy 5% of stock in that company then at the end of the month nor year whatever the company earn you will only get 5% of that. so if the company earn a million then you will get 5% from it. for example you exchange 5% of share from that company worth 20 thousand then at the end of the year the company earn a million so you will get 50,000 from them. though theres also a tendency that the company losses instead of having profit, so if your interested, try to monitor the company stocks if they are earning or not. while in foreign exchange its what they called its your own games to play, as you invest your dollars by selling or buying then wait the next day, like if you buy 10 dollars against peso which is 44 pesos for 1 dollar, then the next day you decided to sell your 10 dollars and wait the next day again, so if the next day the dollars to peso worth 45 then you can earn 1 peso each but if if the value decline to 43 then you will loss 1 dollars in it. its more risky since we cant predict the value of money exchange, but if you really interested then better figure it out by monitoring the value of money for a week nor a month if the value keep on going down or going up, so if the value is keep on going up then it means you can exchange coz you know you will earn.
• Philippines
30 May 10
That's great homeshoppers! I get it now. So in your, opinion, which is better? Forex or stocks? Which is easier? Thank you very much! I appreciated your great help. ;)
@divitiae (193)
1 Jun 10
Shares tend to go up over time but currencys tend to gyrate so they remain unchanged over time, also currency dosent't have profits or assets so it is difficult to value. I prefer shares as an investment but if you are in shares sooner or later you will need to do forex to hedge yourself if you or your businesses invest abroard.
• Malaysia
31 May 10
i asked my 7 year old nephew the same when i saw your question this morning. his reply was cute and straight to the point: Stock Exchange is where you can change stocks. Foreign Exchange is where you can change foreigners.. i know it doesn't explain much. but it really is worth a laugh! hehe..
@vijayanths (7878)
• India
30 May 10
Stock exchange- you mean here the trading of stocks or shares of public limited companies. foreign exchange-here you mean trading of currency such as USD, Euro, Yen, Candaian dollar, Pounds etc... Both have risk factors- it is like driving a vehicle- you should learn the trade before investing on it, good luck.