People often ask what the difference is between transgender and transexual. We are in a stage in history of gender enlightenment as more folks dig deep into their gender identities. Preferred pronouns were once a design of those transitioning from one binary gender to the other but as time goes on there are a wealth of folks who feel most comfortable somewhere in the middle, neither fully identifying as traditionally male or female. The question that seems to be out there now is, what is the difference between genderqueer and transgender? Who is allowed to change their pronouns and should we respect their wishes, even if the person doesn't look like a "they," or a traditional "he."
Genderqueer remains a mystery term to most, especially those who do not encounter queer identified individuals on a daily basis. The truth of the matter is that some genderqueer people identify as such because they live in the place between traditional male and female roles, physical expression, and societal norms. They may even reject the idea of binary gender altogether and believe it to all be an act or a play. Therefore those who identify as genderqueer are flexible and feel comfortable playing with the relationship between how one feels in their body and how one presents their body to the world, during sex and in traditional gender roles.
On the other hand, transgender is a term resigned for folks who feel strongly aligned with one binary gender or the other. They feel trapped in a body that expressly defies the gender they know themselves to be in their minds. You can see how different this is from being genderqueer, right?
If you're really curious here is a great glossary of terms that further outlines the tools genderqueer folks use to play with gender.