What is the difference between foreign exchange and fund?

Foreign exchange and fund are now more popular investment methods, but there are many investors often put these two ways together for comparison. The following small series will introduce what is the difference between foreign exchange and fund, and which is better.


First of all, from the concept, foreign exchange refers to the exchange rate between currencies, such as RMB to us dollar, US dollar to Canadian dollar, Canadian dollar to Australian dollar, etc., but the exchange rate is not constant, and the foreign exchange market is a two-way transaction, and the trading time is 24 hours. What we fry in foreign exchange is the difference between exchange rates.

The profits and losses of foreign exchange transactions come from the whole international market, so foreign exchange transactions can only be profitable only by technical analysis and real-time grasp of international information; foreign exchange transactions are transparent and open, and no market makers will manipulate the market. Profit and loss come from the control of risk, the operation of technology and the grasp of information.

In a broad sense, fund refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment fund, provident fund, insurance fund, retirement fund, and funds of various foundations.

The difference between exchange and fund:
1. Leverage. Foreign exchange usually uses hundreds of times of leverage to enlarge investors' funds for trading and increase profits. But the fund has no leverage, how much money to buy as many funds.
2. Short to make money. Foreign exchange is a two-way profit model, which can not only catch up with the falling exchange rate, but also make money by shorting. And the fund can only make money by buying high
3. T + 0 mode. Foreign exchange belongs to the T + 0 mode, which can be bought and sold at any time, while the fund has regulations on how long it must be held before it can be sold.
4. The service charge is low. The foreign exchange service charge is lower than that of the fund. The foreign exchange has the transaction point difference used as the service charge. In addition to the service charge, the fund may also have certain tax.
5. Trading time. Foreign exchange can be traded within 24 hours except for Saturdays and Sundays, while funds can only trade at a fixed time every day.

The above is about the difference between foreign exchange and fund, which investment mode should be chosen or decided according to the senior situation of investors. If the above is helpful to you, don't forget to pay attention to us to learn more about investment and financial management.

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