EuropeFX Academy Compares Forex and CFDs Trading
If you’re familiar with the trading world, you’ve probably heard about the Forex and CFD markets. Both of these markets deal with trading items, but just in different forms and with different executions. Both the Forex and CFD markets are very profitable, but can be difficult to start in. Similarly, there are independent and corporate traders with companies like EuropeFX Academy in both sectors. There are many other similarities and differences between the two. Here’s a quick overview of what you can expect when trading Forex vs. trading CFD.
Similarities Between Forex and CFD
To start things off, both Forex and CFD traders are a part of an online market. Although there are larger organizations that specialize in Forex trading, like EuropeFX Academy, there’s no actual physical site or location that be referenced or visited. Everything is done through an online platform. There are also similar pricing rates and charting formats between the two trades.
Yet another similarity of both Forex and CFD trading is the cost of fees. Other markets, like the stock market, have lots of commissioning and other fees that go into trading and purchasing stocks. Trading in the Forex and CFD markets has little to no fees attached, regardless if you work independently or with a company like EuropeFX Academy.
Differences Between Forex and CFD
There are a few things that set Forex trading apart from CFD trading. Forex trading involves trading specifically currencies in foreign markets, while CFD trading revolves around trading a wide array of assets, like metals and energy.
One of the most important differences between the two is what affects their respective markets. Because Forex trading is based on currency and currency has the ability to affect literally everything, social and political events, like international policy changes and employment shifts, can affect the success of trade. On the other hand, CFD trading is more refined, and is mainly affected by changes in the supply and demand of the assets.
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