Forex Trading or a Bank Deposit!

Those, who invested in cryptocurrency in 2017, could earn more than 100%. Since January, the leading stock indexes of the USA, Europe, and Asia have yielded investors more than 13% already, and it’s still a month and a half till the end of the year. Currency price changes can yield more than 100% a year, while the interest rate in the USA is 2-4%, in Europe – 0.5-1%, in Asia – 3-7%. at first sight, the choice between exchange (and off-exchange) trading and banks, according to the investment return, is obvious: banks hardly cover inflation. But everything is not that simple.

First, I’ll remind the principal difference between Forex and the exchange market. An exchange is an intermediate, a platform where one can buy both currencies and securities, in their physical or electronic form. An investor makes a contract in paper or electronic form with a broker, who has access to an exchange (trading) platform, tops up his/her account, and starts trading. By investing money in assets through an exchange, an investor becomes their real owner. Well, forex brokers are too good at providing awesome offers. Like, LiteFinance provides an awesome offer called New Year Promo 2022.

Forex is an off-exchange market, participated by traders, brokers, liquidity suppliers, market makers. There, a trader also makes a contract with a broker (or agrees with an offer) and invests through the trading platform in different assets: currency pairs, metals, commodity assets, cryptocurrencies. There are two models of trading between a trader and a broker:

Quotes providers are the same both in Forex and in exchange trading. But in Forex, traders invest in CFD (contracts for difference), making profits from the difference in asset prices. That is the main difference between Forex and exchange. Both Forex and exchange let make profits from price changes of currencies, securities, and commodity assets.

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