Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARDS :: cpt
Forex »
 Perils of an ad hoc forex policy
 Rupee depreciated by 17 paise to Rs 45.62 a dollar in early trade
 Rupee strengthened by 7 paise against dollar
 Rupee up by 4 paise against dollar in early trade
 Rupee falls by 18 paise at 4-week low against dollar
 Rupee drops on weak shares; inflation eyed
 Rupee raises 6 paise against dollar in early trade
 Rupee among most traded in futures market
 Indian rupee gain 12 paise against US dollar
 Rupee marginally rise up by 1 paise against US dollar
 Rupee drops tracking euro, choppy shares

Forex versus commodity trading
October, 23rd 2009

Nitin is an enthusiastic investor. He has tried to keep abreast with every development in the financial market and is always on the lookout for new investment option which can maximize his returns and increase his wealth.

However, with the plethora of investment options available, Nitin is a little confused in what he would like to invest in. He has homed in to good investment avenues - Forex trading and commodity trading. He has found that Commodity trading and Forex trading are two of the most popular ways to invest and two of the markets which are easiest to make money in. He has also found that most traders have turned to commodities and Forex over stocks due to the overall decreasing value of stocks in the stock market and that many people are making their fortunes using these methods.

However, since his confusion was not readily resolved, he decided to analyze both the options so that he could determine which would be easiest for him to trade in, which would be most profitable and which would be most consistent. Here's what he found.

Ease of trading

Commodities can be fairly easy to trade because their value is usually based directly on supply and demand. When anything being traded is directly based on supply and demand, it's trend will be more predictable.

Forex can be rather easy to trade if you are using the right trading system or strategy, however, Forex can also be very complex if you are unsure about the system or strategy you are using.


Commodity trading can be very profitable; however it depends on the amount of money you initially invest.

Currency trading can also be extremely profitable. With an average daily turnover of over $1.3 trillion, millions of people are earning their fortunes by trading in the forex market. Traders also have the option of trading with leverage. While trading with leverage is risky, it increases your potential to make money.


Trading commodities can be consistent; however one of the only ways to predict future values is by utilizing market news and analytics.

The Forex market is overall more consistent than commodities. Forex trends can be predicted using set techniques. There are many trading strategies available on forums which can be learned and, best of all, proven Forex signal services offer traders the opportunity to trade with automated signals which tell them what to trade & when to trade it.


Commodity prices can jump all around the board depending on demand, weather, crop percentages planted, oil found or not found, etc. This decreases the amount of change you can predict.

Forex markets are more predictable. Sure, currency prices can fluctuate and become volatile at times, but there is more of a pattern involved with Forex. There are more trends created in Forex that can be followed compared to the commodity market. This can make it easier to be consistent when trading Forex.

Finding Information

Information about trading commodities can be fairly difficult to find, especially information which is free. There is an ample amount of information available, but a lot of it is costly to obtain.

Forex information is much more accessible and most of it is free. You can also sign up for practice accounts at many forex sites and actually try your hand at forex trading without risking your capital. This makes for a great introduction to forex trading and lets you know what the possibilities are. These practice accounts in forex trading are typically not available in the commodities arena.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions