Types of Markets — Stocks, Forex, Crypto & Commodities
Compare the four major market types. Understand what moves each market, trading hours, and which suits your style.
Not all markets behave the same way. Stocks, forex, crypto, and commodities each have their own personality — different hours, different risks, and different reasons people trade them. Understanding these differences is essential before you put money on the line.
Stock Markets
When you buy a stock (or "share"), you own a tiny piece of a company. If the company grows and profits rise, the share price tends to go up. If the company struggles, the price falls.
Trading hours: The London Stock Exchange is open 8:00am – 4:30pm UK time, Monday to Friday. US markets (NYSE, NASDAQ) open at 2:30pm UK time and close at 9:00pm.
Best for: Long-term investors and swing traders who don't need 24/7 access. UK investors can use an ISA to shelter gains from tax.
Forex (Foreign Exchange)
Forex is the world's largest market — over $7 trillion traded daily. You're trading one currency against another. For example, GBP/USD means you're betting on the pound strengthening or weakening against the US dollar.
Trading hours: 24 hours a day, five days a week. The market follows the sun — Tokyo opens first, then London, then New York.
Key risk: Forex brokers offer very high leverage (sometimes 30:1 for retail traders in the UK). This magnifies both gains and losses dramatically.
Cryptocurrency
Bitcoin, Ethereum, and thousands of altcoins trade on exchanges like Coinbase, Kraken, and Binance. Crypto is volatile — 10% daily swings are not unusual.
Trading hours: 24/7, 365 days a year. Markets never close, which means prices can gap while you sleep.
UK note: The FCA has banned the sale of crypto derivatives (CFDs, futures, ETNs) to retail consumers. You can still buy and hold actual crypto, but spread betting on it is restricted.
Commodities
Gold, oil, silver, wheat, natural gas — these are real-world resources. Commodity prices are driven by supply and demand, geopolitics, weather, and economic cycles.
How to trade them: Most retail traders access commodities through CFDs, spread bets, or ETFs rather than buying physical barrels of oil.
Best for: Traders who follow macro news and want to diversify beyond stocks and forex.
Quick Comparison
| Feature | Stocks | Forex | Crypto | Commodities |
|---|---|---|---|---|
| Hours | Set hours | 24/5 | 24/7 | Set hours |
| Volatility | Medium | Low–Medium | Very High | Medium–High |
| UK Tax-Free? | ISA only | Spread bet | No | Spread bet |
| Beginner-Friendly | Yes | Moderate | Risky | Moderate |
Which Should You Start With?
If you're brand new, stocks are the most straightforward. You can buy shares in companies you already know — Tesco, Apple, Lloyds — through a Stocks & Shares ISA with zero capital gains tax. Once you're comfortable reading charts and managing risk, you can branch into forex or commodities.
Risk Warning
Trading and investing carry significant risk. You can lose more than your initial deposit when trading leveraged products. Past performance is not indicative of future results. The content on TradeLearn is for educational purposes only and should not be considered financial advice. Always do your own research and consider seeking advice from a qualified financial adviser before making investment decisions.