Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately. In the currency markets, your portfolio won't be affected by after hours earning reports or analyst conference calls Recently, after hours trading has become available for U.S. stocks - with several limitations. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, stock traders must wait until the market opens the following day in order to receive a tighter spread. The liquidity of this market, especially that of the major currencies, helps ensure price stability.
Investors can always open or close a position, and more important, receive a fair market price.
Because of the lower trading volume, investors in the stock market and other exchange-traded markets are more vulnerable to liquidity risk, which results in a wider dealing spread or larger price movements in response to any relatively large transaction. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Lower transaction costs It is much more cost efficient to invest in the Forex market, in terms of both commissions and transaction fees. Typically, stock commissions are directly related to the level of service offered by the broker. At the high end, traditional brokers offer full access to research, analyst stock recommendations, etc.