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Forex Markets |
Stocks and Derivatives Markets |
| Trading Hours |
Trade 24 hours a day, 5days a week |
Trading hours limited to market opening hours |
| Liquidity |
Most liquid market in the world overshadowing all others in comparison. Most transactions must continue, since currency exchange is a required mechanism needed to facilitate world commerce. |
Risk of lack of liquidity after market hours and/or if market participants decide not to trade or move to more popular markets. |
| Transaction Fees |
Zero Commissions* |
Subject to fees like commissions, clearing fees, exchange fees and government fees. |
| Capital Efficiency |
More capital efficient; low margin rates. Up to 20-to-1 leverage. |
Less capital efficient; large capital requirements, high margin rates if any. |
| Short selling |
No restriction |
Restricted for some stocks. No restriction for derivatives. |
*DBSV is compensated by the bid and ask spread. |