Can anyone weigh in on the difference between the cash market and trading the futures. Is it better to trade the CME 6E contract or just trade the cash market EUR/USD using the spread?

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Quoting kwallaceDislikedCan anyone weigh in on the difference between the cash market and trading the futures. Is it better to trade the CME 6E contract or just trade the cash market EUR/USD using the spread?Ignored
Quoting narafaDislikedAnother difference, futures are traded on exchanges with starting and ending bells, so you will experience daily gapsIgnored
Quoting kwallaceDislikedCan anyone weigh in on the difference between the cash market and trading the futures. Is it better to trade the CME 6E contract or just trade the cash market EUR/USD using the spread?Ignored
Quoting merlinDislikednot anymore!!! now you can trade currency futures (ie EC, JY) on electronic markets that are open 24 hours just like forex. however, the volume outside NYC hours is not what it is in forex. so currency futures are a 24/5 market, but not quite to the capacity that forex is.Ignored
Quoting merlinDislikedbtw, what the hell good is it that the futures market is regulated when these poor futures traders can not get their money out of refco?? if they never get their money back, regulation is just about worthless. but the story aint over yet.Ignored
Quoting merlinDisliked3. forex charges interest (rollover charges)
this is a whole other topic, but if you want to be long the japanese yen right now, it is better to trade in the futures market, because you will not be charged interest. inversly, if you want to be long the dollar, you would want to do that in the forex market, because you will collect interest. this only matters a lot when you hold positions long term.Ignored
Quoting SamfoxDislikedTo me hands down the futures markets rule.
The FACT that they are regulated and governed is reason enough for any SERIOUS trader to not mess around with forex brokers.
I could list a bevy of theoretical reasons why I feel this way BUT my main reason is just because I have traded BOTH and like I said the Futures markets are for the serious trader.Ignored
Quoting SamfoxDislikedTo me hands down the futures markets rule.
The FACT that they are regulated and governed is reason enough for any SERIOUS trader to not mess around with forex brokers.
I could list a bevy of theoretical reasons why I feel this way BUT my main reason is just because I have traded BOTH and like I said the Futures markets are for the serious trader.Ignored
Quoting merlinDislikedcome on sam, are you telling me you have traded both markets and you see no need to trade forex? AT LEAST you would want to trade forex when your position is in an interest gaining configuration, right?Ignored
Quoting SamfoxDislikedSo the answer is, NO I will not trade with a Forex broker until they answer to some kind of regulatory body that I can trust.Ignored
What is an ECN FX BROKER? :
"An ECN is like an interbank broker. They don't trade against you so there is no need to manipulate the price. They consolidate bank quotes and show you the best bid and offers available. Spreads are tighter, but you have to pay commissions. When you make a trade they pass it through to interbank, so the counterparty is a real trader. Leverage is generally lower and minimum balances are higher. Interbank trades in $100,000 increments, so you need to be large enough to fit $7-10 per pip trades into you rmoney management.
A retail forex company acts as the market maker for all your trades. They shade prices, widen spreads arbitrarily, and trade against you. Their basically modern day bucket shops. The advantages retail brokers provide are that you can open an account with very little money, they give you crazy leverage, and usually you can demo trade on their platforms until you learn what you're doing. Most of them also have micro and mini lots so you can trade very small sizes."-DarkStar
Quoting avlasovDislikedOkay, Okay!
We understand all the hype about spot market makers.
However... What do you have to say about ECN Forex Brokers
ECN brokers include :
- CoesFx
- Hotspot FX
- Interactive Brokers
- MB Trading
What is an ECN FX BROKER? :
"An ECN is like an interbank broker. They don't trade against you so there is no need to manipulate the price. They consolidate bank quotes and show you the best bid and offers available. Spreads are tighter, but you have to pay commissions. When you make a trade they pass it through to interbank, so the counterparty is a real trader. Leverage is generally lower and minimum balances are higher. Interbank trades in $100,000 increments, so you need to be large enough to fit $7-10 per pip trades into you rmoney management.
A retail forex company acts as the market maker for all your trades. They shade prices, widen spreads arbitrarily, and trade against you. Their basically modern day bucket shops. The advantages retail brokers provide are that you can open an account with very little money, they give you crazy leverage, and usually you can demo trade on their platforms until you learn what you're doing. Most of them also have micro and mini lots so you can trade very small sizes."-DarkStarIgnored
Quoting merlinDislikedthis is by no means an all encompassing list, but here are the differences as i see them (many were already mentioned by narafa)...
6. forex has no commission
but the spead cost is more than in futures. futures commission are about 5 bucks per round turn.Ignored