Getting into business is a life decision that people make. In business, every move comes with an opportunity cost. This cost is the foregone benefits that would come as a result of not venturing into a particular business. Successful business people are those whose opportunity cost is minimal. Opportunity costs are very important issues to examine for somebody who might be considering to become a forex broker. Since other areas like the stocks market and the real estate market also provide a viable means of making an income, is it really worth to venture in forex? The following is a comparison of these three fields with an aim of establishing the benefits and disadvantages of each.


Real Estate

The real estate business is quite attractive to businesspeople. This is because it is an evergrowing business where demand is constant. Compared to the stocks market and forex market, real estate provides investors with the biggest opportunities. On the downside, however, the real estate business demands huge amounts of cash that most people might not have. For those might opt for loans, the probability of getting stuck in debt is quite high.

The advantages are:

  • Great returns through passive income
  • Reliable long-term investment
  • High-value real assets

The disadvantages are:

  • Capital-intensive
  • Elaborate legal procedures


The Stocks Business

The stocks market is a great place to invest when you have a relatively substantial amount of cash to spend. This market has always attracted people from many different fields and backgrounds. The main advantage of the stocks business is that an investor gets to own part of a company that they did not help establish. Compared to forex and real estate, the stocks business is right in the middle. There is an opportunity for growth regardless of the funds an investor has.

The advantages are:

  • Great returns on investment
  • Easier to manage assets
  • Big opportunity for growth

The disadvantages are:

  • High risks involved
  • Time-consuming

 

Forex

The forex market, on the other hand, is a low-risk business that also requires little resources to run. This business has attracted people from all backgrounds because it is less risky compared to real estate and the stocks business. The only disadvantage of forex trading is that the returns are usually low and there is a lot of time spent doing trades. Other than that, it is the perfect kind of business for all prospective business people as it provides valuable business lessons.

The advantages are:

  • Low investment required
  • Low risks involved
  • High chances of growth

The disadvantages are:

  • Unregulated
  • Time-consuming


Conclusion

In conclusion, all the above business realms are great for anyone with an interest in the business world. The main difference between each of them is the barriers to entry and returns to investment. In general, people who have access to enough capital are better off investing in real estate that in forex. Those with little resources, on the other hand, should go straight to the forex business. Regardless of the choice, the risks associated with doing business will always be there. The most crucial issue should be focusing on risk management.

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Author

  1. avatar
    Andrew Cioffi