Question: Is forex trading or commodity trading better?
This is something that really boils down to a few factors.
- Personal Choice
Some people feel more comfortable with certain types of markets. Some people like commodities because it is still a physical market. Many commodities can be seen in use in your daily life. Some traders feel like they have more of a connection because of that.
- Differences in Regulation
The commodities markets are very regulated. Forex is more like the wild west. There is some regulation, but a lot of it is loose. There is a fair amount of circumvention of what little regulation exists already. Some traders feel that they will be better off with the government on their side.
Although there is leverage in both markets, there is a significant amount of leverage in the forex market and you don't have to go through hoops to be able to have it. Just fund your account with a few hundred dollars to control thousands. While leverage is also an option in commodities markets, the leverage in forex trading is much more spectacular.