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Comparison with Other Financial Products
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Comparison with Other Financial Products

Forex vs Stocks

Forex Stocks
Trading Hours
The Forex market is open 24hours a day You can only trade during trading hours of respective stock market
COMMISSION FEES
Hirose Financial UK does do not charge commission fees; we are compensated through the bid/ask spread Stocks trading always need middlemen, or to put it in another way, you always need to pay a commission fee
ORDER EXECUTION
Under normal market conditions, transactions are executed instantly It can sometimes take while to execute a trade, especially illiquid stocks
SHORT SELLING
Traders are free to take long/short positions in the market, because currency trading involves buying one currency and selling another Short selling is restricted by the ability to borrow a stock and by regulation
MIDDLEMEN
Traders trade directly with the market. And as the forex market is decentralized (each currency dealer has different quotes) traders can get the best rate of their transaction Traders always need middlemen for stock transactions, be it brokers or the other entities, and the middlemen will charge fees for the service
MARKET MANIPULATION
Forex market size is very large that so the possibility of any individuals, funds, banks, governments to control and influence the market rate is small. Market size is limited, and the possibility of it being controlled by large institutional players is quite high

Forex vs Futures

Forex Futures
LIQUIDITY
In the Forex market $4trillion is traded daily, hence the market is very liquid The futures market trades $30 billion daily. Compared to the forex market, liquidity is much less
Trading Hours
The Forex market is open 24hours a day, 5 days a week Traders can only trade during the respective futures market trading hours
COMMISSIONS FEE
Hirose Financial UK does not charge commission fees, as they are already compensated through bid/ask spread. Traders are required to pay the brokers commission per transaction
PRICE CERTAINTY
Forex trading execution is fast, and the executed price is almost always the same as the market price, under normal conditions. The price quoted is often represented by the last trade price, not necessarily the price for which the order will be executed at
LIMITED RISK
Hirose Financial UK has implemented a Margin Call Policy to protect its clients from losing more money than remaining balance in their accounts under the normal market conditions. Due to liquidity issues it is possible that client positions may be severely affected by changes in trading sentiment. if the trader's P&L suddenly becomes negative, the loss may be larger than the funds the trader has in their account

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