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With a daily volume of $1.5 trillion, the Foreign Exchange (Forex) market is the largest in the world. 30 times larger than the combined volume of all U.S. equity markets Historically. There are many advantages to Trade Forex Vs Futures.
- ZERO commissions and exchange fees
In the futures market , you must pay commissions and exchange fees. In the currency market, you pay NO commissions and NO exchange fees.
- Instantaneous execution and firm prices!
The futures market does not offer instant execution or price certainty. Even with electronic trading and limited guarantees of execution speed, the price for fills on market orders is far from certain. In the futures market , the prices quoted by brokers often represent the LAST trade, not necessarily the price for which the contract will be filled. On the Forex trading station, you trade directly off real-time streaming prices. Your trades are filled instantly. There is no discrepancy between the displayed price and the execution price. This holds true even during volatile times and fast moving markets.
- 24 Hour Market Action and Liquidity
Unlike most futures exchanges, the currency market is a seamless 24-hour market. At 2:15 p.m.Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 p.m. the Tokyo market opens, followed by London at 2 a.m., and finally New York at 8 a.m. As a trader, this allows you to react to favorable or unfavorable news by trading immediately. If important data comes in from England or Japan while the U.S. futures market is closed, the next day's opening could be a wild ride. (Overnight markets in futures currency contracts exist, but they can only be thinly traded, are not very liquid and are difficult for the average investor to access).
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