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Pros/cons of trading FX futures?

  • #1
  • First Post: Edited 2:20am May 30, 2013 2:05am | Edited 2:20am
Good day to you all!

I have a question on my mind: what are the advantages / disadvantages of trading FX as futures?

Futures market seems to be a safer place to be as it is regulated, brokers can't mess with your spread and deposits are in a safer account. It is possible to trade micro (10.000) lots as futures too, so why is it so seldom too see someone to trade FX futures?

Your experience is very welcome. Thank you!
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #2
  • May 30, 2013 4:47am May 30, 2013 4:47am
Quoting Yuri57
Good day to you all! I have a question on my mind: what are the advantages / disadvantages of trading FX as futures? Futures market seems to be a safer place to be as it is regulated, brokers can't mess with your spread and deposits are in a safer account. It is possible to trade micro (10.000) lots as futures too, so why is it so seldom too see someone to trade FX futures? Your experience is very welcome. Thank you!
PROS
------
1) entries can be more precise and with one pip of spread in the major, most liquid pairs (EUR/USD, GBP/USD, ect.), slippage is small
2) futures market are regulated, while brokers can do a lot of "tricks"
3) no overnight carryover costs, no borrowing costs

CONS
------
1) less option for leverage (maybe), you can consider only major futures (e.s. 6E), half sized (e.g. E7) and CME micro FX futures (e.g. M6E)
2) rolling over futures on longer swings can be painful

Cheers
-fibstalker
"markets traded by programs/HFT offer a significant trading edge..."
  • #3
  • May 30, 2013 5:17am May 30, 2013 5:17am
Sounds like more pros than cons.
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #4
  • May 30, 2013 5:42am May 30, 2013 5:42am
Spot Forex vs Forex Futures

http://www.fxstreet.com/webinars/ses...2-efd7b585d50f
tradewith60
  • #5
  • May 30, 2013 7:02am May 30, 2013 7:02am
Quoting 60minuteman
Spot Forex vs Forex Futures http://www.fxstreet.com/webinars/ses...2-efd7b585d50f
Basicly says what I thought: trading mini-futures are better because you don't play against the house.

Can you recommend a good futures broker?

Thank you!
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #6
  • May 30, 2013 7:27am May 30, 2013 7:27am
Interactive Brokers. Don't forget to factor in market data fees and minimum commissions.
  • #7
  • May 30, 2013 7:30am May 30, 2013 7:30am
Quoting Yuri57
{quote} Basicly says what I thought: trading mini-futures are better because you don't play against the house. Can you recommend a good futures broker? Thank you!
http://www.cmegroup.com/globex/
tradewith60
  • #8
  • May 30, 2013 7:39am May 30, 2013 7:39am
Quoting TheMaxx
Interactive Brokers. Don't forget to factor in market data fees and minimum commissions.
They are reputable and trustworthy, but I still wonder how they have such a bad trading platform.
  • #9
  • May 30, 2013 7:42am May 30, 2013 7:42am
Quoting CaymanTrader
{quote} They are reputable and trustworthy, but I still wonder how they have such a bad trading platform.
This is the only reason which keeps me away from trading with them.
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #10
  • May 30, 2013 7:48am May 30, 2013 7:48am
Quoting 60minuteman
{quote} http://www.cmegroup.com/globex/
As I understand you do need a broker to access Globex, right?

http://www.cmegroup.com/tools-inform...ectory-na.html
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #11
  • May 30, 2013 7:53am May 30, 2013 7:53am
Quoting Yuri57
{quote} As I understand you do need a broker to access Globex, right? http://www.cmegroup.com/tools-inform...ectory-na.html
I would contact them directly and they can advice you on the best solution for you..
tradewith60
  • #12
  • May 30, 2013 9:03am May 30, 2013 9:03am
Hi Everyone,

I am new here to FF; been trading approximately 12 years. Could someone please direct me to the thread that deals with EMA price alerts? Thank you.
  • #13
  • May 31, 2013 2:08am May 31, 2013 2:08am
I use saxobank.com for demo trading index and currency futures (through TD direct invest - unlimited trial), their platform isn't as good as Dukas jForex but the charting and other features overall are good enough to use. They have a decent mobile platform for checking when on the move.

Commission wise, they are more expensive than IB IIRC.

Regards,
  • #14
  • May 31, 2013 2:11am May 31, 2013 2:11am
Quoting 60minuteman
{quote} I would contact them directly and they can advice you on the best solution for you..
They gave me the link I posted.
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #15
  • May 31, 2013 9:58am May 31, 2013 9:58am
Ok, here is the issue I'm facing: liquidity is quite dry on EUR, GBP, AUD but there is no traded volume on YEN and CAD at all.


It this normal?
Yeah?! Well.. you know, that's just like.. your opinion man! - Big Lebowski
  • #16
  • Last Post: Jun 17, 2013 8:57am Jun 17, 2013 8:57am
Quoting TheMaxx
Interactive Brokers. Don't forget to factor in market data fees and minimum commissions.
I'm looking at opening an account with Interactive Brokers - what is your experience in terms of feed quality and fees commissions? Do you pay per feed or groups of feeds? Platform any good? I intend on pulling the feed into my own platform...
cryptocurrency everytime
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