If you have only recently looked into the possibility of currency trading, you may have many questions, not the least of which is wanting to know how it differs from other kinds of investment trading. The major difference a potential trade will note is that currency trading does not require the services of a stockbroker, you deal directly with the trading entity such as FOREX.com where you deposit your funds, make your trades, and other currency trading functions. The absence of a broker means no brokerage fees, however, there are commissions involved in the trading process.
Another difference is that the market is less volatile, and as such, you do not take as many risks as you do in the securities market. Although some stocks may be more stable than others, such as utilities, for the most part, trading in the stock exchange is a risky business. With currency trading, the trader is personally following the trends, and as such, is more personally cognizant of when the right time is to make trades. There is no intermediary who makes the decision for the trader, so the trader must be knowledgeable enough to know what to do and when.
With stocks, bonds, and securities, the only money to be made is in the dividends or the sale of the securities. Certainly, in currency trading, you are not going to make money until you sell, but the market is more flexible to that trend of transport. No dividends are involved in holding currencies, however, if you trade in the market efficiently, you will make more profit than you do in the stock market between dividends and the sale of security instruments.