Forex market has too many advantages over the futures market, as compared to market securities .
Compare Markets futures vs forex market Forex and futures markets
Liquidity terms
In the forex market, the USD 4 trillion traded each day, making it the market account and bar the biggest account in the world. This market can attract a critical mass and scale trading of other markets. Trading of futures markets is only 30 billion dollars a day, is too small compared with Forex.
ADD Clauses of the futures market are limited, so it can not compete with the Forex market. Forex market always stick clause better, at any price means transactions which can also order matching and cut with a small or no inflation unless the market is strong fluctuations.
24-hour market
5h pm EST Sunday open market starting in Sydney. At 7 o'clock pm EST the Tokyo market opening, followed by the London market at 3 pm EST. And finally the New York open at 8 am EST and closes at 4 pm EST. Before New York close, the Sydney market will reopen. Forex market is a 24 hour continuous operation!
For investors, this allows you to react to good or bad economic news by trading immediately. If the news is important from England or Japan while the futures market closed. The next open day is likely to fluctuate significantly. (Overnight futures market actually still open but trading was slow, and very difficult for speculative investors or individual can enter into transactions at this time)
Very little or no commission
Since its floor broker forex electronic trading becomes more prevalent and popular around the world in the past few years, this is a chance for the floor broker may require you to pay the brokerage fee (commission). However, the brokerage fee is just grains of sand compared to what you pay in the future market. The fierce competition between floor brokers to bring you the best support and extremely low transaction costs.
Exact price
When trading Forex, trading orders are made quickly and accurately price the normal state of the market. In contrast, the futures contract does not provide a fixed price, or execute the command immediately. Even with the advent of electronic trading at the speed of transaction quickly, the price of the futures contract is still not fixed. Prices are usually floor brokers perform differently than the subscription price of the futures contract.
Limit Risk
In the transaction, investors should always have limit points for risk management purposes. This figure is calculated depending on the amount of financial accounts . In the Forex market, the risk is very small, because the trading software will automatically detect online orders to close all trades (margin call) if the total amount of collateral used (required margin) exceeds the existing capital assets account.
With the normal market condition, all orders can be closed properly cut losses. (In which case the strong fluctuations, order transaction can close pass stop loss)
In the futures market, your trading orders may be greater liquidity than capital losses in financial terms, and in return you are responsible for any resulting deficit in the financial account.
The table compares the Forex and Futures markets
