The foreign exchange market is a true 24 hour market where trading is allowed 24 hours per day, 5 days per week. Equity trading is restricted to trading only during normal business hours, which is around 7 hours per day. The foreign exchange market is the only trading platform that allows trading 24 hours a day, where their is constant movement in the foreign exchange market.

The trading volume in the foreign exchange market is often 100 times larger than the NYSE and other major stock exchanges. It is easier to find dealers that are willing to buy and sell currencies because of the 24 hour market and the need by countries to continue to trade goods. Equities are vulnerable to liquidity because of the limited number of trades per day, and lack of accessibility by the average trader. Large price movements often take place in the equity market because their are less transactions taking place, and one individual trader can change the pricing of the market.

The spreads are much lower in the foreign exchange market, especially in hours when the traditional markets have already closed. Over time, the forex market has been offering tighter spreads on smaller transactions. The margin ratios that are associated with trading on the forex are somewhat higher than some of those associated with equities trading. Leverage in the forex market gives traders the opportunity to trade much larger amounts of currency than they have deposited. Forex brokers offer leverage anywhere from 50:1 to 200:1 on their initial deposit.

In the forex market, you can trade on the upward trends and downward trends of the market. In the equity market it is less common and more difficult due to certain market regulations. These regulations make it harder for traders to profit from a stock when it begins to decrease in value.

The most important advantage to trading on the forex is the lack of commissions or transaction costs. The forex brokers make money off of the spread, and they don't debit fees directly from your account. Stock trade commissions can range anywhere from $5 to $100. With the forex market, you can trade all day long without worrying about any excessive fees or commissions.