Investing is a passive thing that anyone can do and hope the markets go up and the economy improves and the system doesn't fall apart again or another bubble doesn't burst or the Fed doesn't do something stupid, etc.
Trading is a profession, not a hobby. It requires committment, many more resources, much more education and training and experience and resources, like any profession. But unlike any other profession, the risk is very high, especially in Forex with 100:1 leverage. You may not know what that term means, but it is a primary killer in the futures and Forex markets, even for those that think they know something. Training is very expensive.
I'm not sure what you mean by stock trading being the "same" as Forex trading. They require different brokers and accounts. A stock is essentially part of a company with their own set of circumstances, products and services, marketing and competitive issues, employees and CEO's. Trading the Forex is a world currency against another, called a currency pair, like GBP/USD, with their own set of world circumstances, governments, bailouts, GDP reports, interest rates, unemployment rates, etc.
What Does Forex Market Mean?
The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day.
Investopedia explains Forex Market
The foreign exchange markets isn't dominated by a single market exchange, but involves a global network of computers and brokers from around the world. Central banks use their massive buying and selling capabilities to alter exchange rates through their open market activities and in many cases will do so not with profit in mind, but rather for any number of policy reasons. Forex brokers act as market makers as well, and may post bid and ask prices for a currency pair that differs from the most competitive bid in the market.
· 10 years ago