Forex vs Stocks: Which is Better for You in 2025?
Complete comparison of forex vs stock trading. Costs, volatility, leverage, hours, and which is best for beginners.
Written by
Carlos Mendez
(MBA, CFA Level II)
Senior Financial Analyst
Published:
Jul 1, 2024
Updated:
Nov 6, 2025
Forex vs Stocks: Which Should You Trade?
Should you trade forex or stocks? Both markets offer opportunities, but they're fundamentally different. This guide breaks down the key differences.
📊 Quick Comparison
| Feature | Forex | Stocks |
|---|---|---|
| Market Hours | 24/5 (Sun 5pm - Fri 5pm ET) | 9:30am - 4pm ET (NYSE) |
| Leverage | Up to 1:30 (EU) or 1:500 | 1:5 (CFDs) or 1:2 (margin) |
| Volatility | Moderate (major pairs) | Varies widely |
| Assets | ~50-70 currency pairs | 10,000+ stocks |
| Cost | 0.6-1.5 pips spread | $0-10 commission |
| Min Capital | $500-1,000 | $500-2,000 |
| Best For | Day trading | Buy-and-hold |
💰 Verdict
Choose Forex if: You want to day trade, need 24/5 access, or have $500-1,000 capital
Choose Stocks if: You want to invest long-term, prefer ownership, or use fundamental analysis
Best Brokers:
- Forex: Pepperstone, Libertex
- Stocks: Interactive Brokers, XTB