This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Currency pairs, also called forex, are not always available on a stock-focused trading platform, and the availability depends on the broker and the platform. Some brokers specialize in stocks, and the stock-focused brokers do not offer currency pairs. Some brokers offer both stocks and forex, and the multi-asset brokers allow the trader to trade currency pairs on the same account and the same platform. The trader who wants to trade both stocks and currency pairs should check the broker's offering, and the trader should look for a multi-asset broker.
Where currency pairs are available
Currency pairs are available on most forex-focused brokers, and the forex-focused brokers offer dozens of currency pairs, including the major pairs, the minor pairs, and the exotic pairs. The forex-focused broker is the most common choice for currency traders, and the forex-focused broker offers the tightest spreads on the major pairs.
Currency pairs are also available on most CFD brokers, and the CFD brokers offer currency pairs as CFDs. The CFD broker offers the currency pairs in addition to stocks, indices, and commodities, and the CFD broker is the most common choice for traders who want to trade multiple asset classes. The CFD broker offers the currency pairs on the same platform as the stocks, and the trader can use the same order types and the same risk management tools.
Currency pairs are not available on most stock-focused brokers that route orders to the major exchanges. The stock-focused broker focuses on stocks, ETFs, options, and mutual funds, and the stock-focused broker does not offer currency pairs. The trader who wants to trade both stocks and currency pairs should look for a multi-asset broker.
The typical spreads and costs
The typical spread on a major currency pair (EUR/USD, USD/JPY, GBP/USD) is 0.1 to 1.5 pips at an ECN broker, and the spread is 1 to 3 pips at a market maker. The spread is the broker's compensation for executing the trade, and the spread is the main cost of trading currency pairs.
The commission is €0 to €7 per round-turn lot (100,000 units) at an ECN broker, and the commission is in addition to the spread. The commission is the broker's compensation for routing the order to the liquidity provider, and the commission is paid per round-turn (open and close).
The financing charge is the overnight cost of holding a leveraged position, and the financing charge is a percentage of the position value. The financing charge is the swap rate, and the swap rate is the difference between the interest rates of the two currencies. The swap can be a credit or a debit, and the swap depends on the direction of the position.
The advantages of a multi-asset broker
The first advantage is the convenience. The trader can manage the stock and the forex positions on the same platform, and the trader can use the same order types, the same alerts, and the same risk management tools. The convenience is a key advantage for traders who want to trade multiple asset classes, and the convenience saves the trader the time of switching between platforms.
The second advantage is the diversification. The trader can spread the risk across multiple asset classes, and the trader can reduce the correlation between the positions. The diversification is a key advantage for risk management, and the diversification is a key advantage for portfolio construction.
The third advantage is the cost. The multi-asset broker can offer a lower commission on the stocks, and the broker can offer a lower spread on the currency pairs, because the broker can bundle the services. The trader should compare the total cost across the multi-asset brokers, and the trader should look for the broker that offers the best value.
The trade-offs of a multi-asset broker
The first trade-off is the specialization. The multi-asset broker is not as specialized as the forex-only broker, and the multi-asset broker may not offer the same depth of forex products. The multi-asset broker may not offer the exotic currency pairs, and the multi-asset broker may not offer the advanced order types.
The second trade-off is the regulation. The multi-asset broker is regulated by the regulator in the broker's jurisdiction, and the regulation may not cover all the products. The trader should check the regulation for each product, and the trader should look for a broker that is regulated for all the products the trader wants to trade.
The third trade-off is the platform. The multi-asset platform is designed for multiple asset classes, and the platform may not be as polished as a single-asset platform. The multi-asset platform may have a steeper learning curve, and the multi-asset platform may require more setup.
Common questions about currency pairs on stock platforms
Can I trade forex on MetaTrader? Yes, MetaTrader is the most popular forex platform, and the platform supports dozens of currency pairs. The broker determines the currency pairs available, and the trader can find a MetaTrader broker that offers the pairs the trader wants to trade.
Can I trade stocks and forex on the same account? Yes, at most multi-asset brokers, the trader can hold both stock and forex positions in the same account, and the trader can manage the positions on the same platform. The account structure simplifies the management, and the account structure reduces the operational overhead.
Is the spread wider on a multi-asset broker? It depends on the broker. Some multi-asset brokers offer tight spreads on both stocks and forex, and some multi-asset brokers offer wider spreads on one or both. The trader should compare the spreads across brokers, and the trader should look for the broker that offers the best spreads on the trader's typical trades.
Related resources
Where to start
If you are evaluating currency pairs on a stock platform, the most useful first step is to check the broker's offering, the spreads, and the commission across three to five multi-asset brokers. Our broker comparison lists the brokers and the available asset classes, which together tell you what the broker offers before you open the account.