Forex Vs. Futures

Forex Vs. Futures


Highly Trending Markets

Because the foreign exchange market gaps are very limited (the market is closed briefly on weekends), it’s not dramatically affected by buying programs that allow it to be easily manipulated. The forex market offers some of the smoothest trends available in any market. No other market can come close to the amount of monetary volume and participation as the forex market making it a haven for traders not having to deal with gaps and price movements, erratic spikes and other choppy market conditions more commonly experienced in the lower volume markets, like futures or options.

No commissions Or Hidden Fee

Though some speculators are unaware, all financial markets have a spread (the difference between the bid and ask price). In the futures market you are not only paying the spread, but you are also paying commission charges, clearing and exchange fees on top of the spread. Ticker prices in the futures market typically signify the last traded price, not the spread. Global Forex Trading offers you commission-free* trading on tradable prices. In a sense, what you see is what you get, allowing you to make quick decisions on your forex trades without having to account for fees that may affect your profit/loss or slippage between the price you have just seen on the ticker and the price upon which the order will be filled.

* GFT is compensated by revenues from its activities as a currency dealer, including proceeds from buying, selling, converting as well as holding currencies and interest on deposited funds and rollover fees.

Better Leverage

Trading in the spot currency markets provides advantages over trading currency futures contracts. One of the main advantages for traders trading spot currencies is the margin rate or leverage that clients are given. In spot currency trading, customers receive one low margin rate for trades done 24 hours a day. In currency futures trading, the client has one margin rate for “day” trades and one margin rate for “overnight” positions. This can become a hassle for traders and decreases the overall tradability of the currency futures markets. Margin rates in spot currency trading vary from around 1 to 5 percent depending on the size of transactions a particular trader initiates. Global Forex Trading’s spot currency trading gives the customer one rate all the time, no hassles and no margin calls. One rate so that the trader can manage their own risk efficiently and simply.