A Quick Highlight of the Pros and Cons of Stocks vs. Futures vs. Forex Trading


Day trading involves trading in the stocks, forex or futures markets. Most people involved in either of these markets generally tend to consider themselves simply as “traders”. Because of this, those who are not familiar with the trade between these markets can assume that they are all the same. Some statistics show that 4 out of 5 people lose money when day trading. The three different markets have various distinguishing factors though. If you are looking to get into day trading, you need to analyze each of the markets carefully before venturing. We will look at a breakdown of the three markets with a focus on highlighting their pros and cons in order to make the choice easier for you.

Stock trading

The stock trading market is undoubtedly the most popular market out there. The forex vs stocks conversation centers around this market which has been around for a very long time. The market has attracted the attention of various investors. If you intend on getting into this market, some of the most important things you should know include:


  • The market operates during the day, normally from 9:30 AM to 4 PM
  • Traders have an infinite selection of stocks to choose from
  • Starting capital is well above $25,000


Evidently, the stock market has a lower limit when it comes to the kind of traders it accepts. This limitation is one of the key things that define the market. The times set aside for trading are also clearly defined. In general, day traders in this market focus on trading a particular stock. The focus on traders can thus be either on the interests or the stock items themselves. The most important issue for a trader who wants to venture into this market is to decide the kind of approach they will take. You can trade a single item all through or you can switch up periodically.

Futures trading

The futures trading market has also been around for a long time. It is not as famous as stocks or forex, but it is still a top option to consider when you want to invest. If you are intending on getting into this market, some of the things about the market you should know include:


  • Starting capital can start from about $3500
  • The market operates from 9:30 AM to 4 PM
  • You can trade by following the action or by focusing on specific futures


The difference between futures and the stock market is clearly visible from the amount of capital needed to venture. Like the stock market, traders often rely on trading the same stock. Research is thus the most important when trading in this market. A globally traded commodity though offers better prospects.

Forex trading

Finally, trading forex is also quite different from trading stocks and futures. It has its pros and also its cons. If you feel attracted to foreign exchange, the following are the things that you should know about the market:


  • Starting capital can be anything from $500
  • The market operates for 24 hours
  • There are many currency pairs to choose from


Foreign exchange is clearly one of the least restrictive when it comes to allowing traders of all kinds. With a very low investment capital needed, this market is for everyone. In addition, one of the most positive factors about the market is that it runs for 24 hours. This means that trading is not limited and only the trader has the prerogative to trade when they want. The market is flexible and it gives every trader a chance to choose between the different trading items available.

Which market should you trade?

When it comes to the market of choice, it all boils down to the individual needs of each trader. According to statistics, the daily foreign exchange volume is more popular than stock by up to 53 times. That shows that the dynamism and versatility between the different markets can determine what a trader will do each trading day. If you do not have enough capital, the obvious market to venture in is the forex market. Otherwise, either of the markets can be great options for investment when you know how to navigate the market.