Trade Forex or Invest in Real Estate: Which is The Best Choice?

Written by Posted On Wednesday, 09 October 2019 10:22

People who want to set a financially-free future need to choose an investment that can provide a steady and regular income without exerting too much effort. To do such, you may either trade forex or invest in real estate. Most of the wealthiest people in the world have their major assets vested in various forms of investments. Xu Jiayin of Evergrand has about $37 billion of assets in Chinese real estate, while George Soros, known as the legendary money maker, made $1 billion in just a day with forex.

Are you now interested? If yes, you can start by checking investing books in the market, such as The Essays of Warren Buffet or Robert Kiyosaki’s Rich Dad, Poor Dad. You can learn the basics, plus some tips and tricks to help you get started with investing. These books helped many average individuals to professionals open their minds to new ideas with a brighter future.

Now, the BIG question is WHAT IS YOUR BEST CHOICE: trade in forex or invest in real estate? Let us start by knowing the basics of forex trading and investing in real estate.

How Do You Trade in Forex?

Forex is the perfect blend of foreign currency and exchange. It is when one exchanges one currency to another. The trade is always in pairs. alcohol consumption says that you can change USD to JPY or vice versa. Now, a forex market is the platform where trading of different currencies happens. Moreover, if you want a smooth forex transaction, it is better to trade through Forex Brokers.

There are three markets to trade forex:

  1. Spot Market: It has the highest volume of traders. It allows individual investors to trade for a long period.
  2. Forward Market: It is a forex market that involves contract trading. 
  3. Futures Market: It involves buying and selling of futures contracts based on the public commodities market.

What is Investing in Real Estate?

Real estate is technically any property above and under the land. It can be a building or even just vacant land. Four types of real estate include:

  1. Residential Real Estate: It involves any property where people live. It can be a single home, a condominium-type building, a townhouse, a duplex, a villa, and many more.
  2. Commercial Real Estate: It includes anything that produces income such as malls, office buildings, shopping strips, medical centers, educational facilities, and hotels.
  3. Industrial Real Estate: It involves the production and storage of products and research. It may come in the form of a warehouse or factory.

Land: It includes vacant lots and farms.

Real estate works mainly through buying and selling properties. Constructing new buildings for residential, commercial, or for mixed-use buildings is now the new trend. Anyone who engages in buying or selling a property is investing in real estate. However, other than the traditional buying and selling technique, there are also new ways where you can invest in real estate, which includes:

Renting a house, a condominium flat, or a commercial unit for a short-term period as in Airbnb, VRBO, or a Home Away

Purchasing stocks of homebuilders and real estate companies

Buy real estate trust funds called REITs

The Pros and Cons

Now, let us tackle the pros and cons of trading forex versus investing in real estate to come up with a possible verdict.

Trade Forex


  1. The forex market is an investment that has the highest form of liquidity.
    Forex has the highest daily trading volume in the financial world.
    You can enter the market easily without many requirements. Plus, it is also easy to stop and rest if needed. For example, if your target forex market is down, you can participate in the next trading day.
    It is available for trading twenty-four hours a day and five days a week. The trading starts every day in Australia and ends in New York. The major countries that have big trading centers are Singapore, France, Hong Kong, United Kingdom, Australia, the USA, and Germany.



  1. You need to understand how leverage works to eliminate the risks that go along with it. Leverage means having the ability to control your trade position even with a minimum amount of investment. You have to look for experienced Forex Brokers to have high leverage on your forex trading.
    You have to have a vast knowledge and understanding of economics and financial indicators. You need to know the fundamentals of how a country’s economy works. Also, you need to study its connection to the international market to be able to have an intelligent guess of which currency should you invest in.

Invest in Real Estate


Real estate is an investment where your assets always increase value over time.
It is a good passive income that generally applies to those who engage in renting, real estate stocks, and REITs.
The advent of technology helps real estate owners to easily connect to buyers, renters, and even potential business partners.


  1. Real estate is not a magic way to get rich. It entails knowledge of property assessment, maintenance, and a deep understanding of property valuation.
    You will require a big amount of capital to engage in the property business.
    It takes time and lots of patience before you can earn from your investment.
    Property management is a serious and complicated task for real estate investors.

The Verdict

Each option, to trade forex or to invest in real estate, has its strong and weak points. If you are a trader who looks for a profit based on capital gains, then trading in the forex market is a better choice for you than engaging in the real estate business. It is because you can start exchanging with a relatively small amount of funding. Studying Broker Reviews will also give you great insight plus the latest updates in the forex market.

However, if you are an investor who seeks to create gains from both passive income and capital gains, then you may want to engage in real estate. It makes your money work for you. It is also a long-term investment that can double or triple your money if placed in the right property.

Just remember that every business venture opens lots of opportunities but also entails many risks. The opportunities are always up for grabs, while the risks are for you to control.

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Jessica Gross

 Jessica Gross is a content writer and a student counselor, who currently works at, write my essay services for 11 years. She writes on the topics related to lifestyle, health, and education. 

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