The Differences Between Trading Stocks and Forex

To the novice, it may seem that stocks and currencies are exactly the same. However, there are a few crucial differences that any forex trader needs to understand before embarking on their first currency trade.
Stock prices are based on the demand for just one share of one company; forex exchange rates are based on the comparison of demand for two different country’s currencies. Just because GBP/USD increased from 1.2098 to 1.4928 doesn’t mean that you made money like you. The forex market is open perpetually. While the NYSE and NASDAQ are open roughly 9am-5pm (and closed on weekends), the forex market is open 24 hours a day, 7 days a week. That means that anybody can make a trade anytime and anywhere. There is a lot of room for changes in exchange rate in that system, so  be aware. Just because you went to sleep, doesn’t mean the currency you own slept as well.
The forex market isn’t really even a market. While the New York Stock Exchange is a tangible place where stocks are literally traded, forex has no such marketplace. Currencies can be traded with little or no regulation. Nobody is stopping you from giving somebody 20 dollars in exchange for 15 pounds on the street. Likewise, there is no official market to trade currencies. London is where most of the forex trading occurs, therefore, it is generally the default price regulator of forex. However, it is not bound by any regulation.