Forex Futures vs. Spot Forex Accounts ...GREAT READ

A very nice find this explaining the pros and cons of both.

Forex Futures vs. Spot Forex Accounts | Forex Dealers and Brokers | Forex

Yes, its a nice comparison. But unfortunately two points are missing: Quality of execution and "virtual dealer plug-in" .

Remaining question for me is: Could e-micros be traded at same prices as corresponding e-mini?

Regards

Hittfeld

I would stay away from Emicros. It looks like nothing more than a revenue generator by the CME to prey on smaller traders. The liquidity's not there so you have larger spreads, and even though you are trading smaller lots you are still paying the same commission (dollar amount). Overall, looks like a lose-lose. If I am ignoring some important details please let me know.

Kris

Hittfeld said:

Yes, its a nice comparison. But unfortunately two points are missing: Quality of execution and "virtual dealer plug-in" .

Remaining question for me is: Could e-micros be traded at same prices as corresponding e-mini?

Regards

Hittfeld

Click to expand...

You can trade through a Forex Futures account or a Spot Forex Account You will see a lot of marketing materials out there explaining why the spot market is so much better and cheaper than the currency futures market, but how much of it is fact and how much is hype? What are the real differences between these two closely related markets? Is it really cheaper to trade spot forex? Aren’t there also advantages to trading futures? This is an important topic because so many of the differences are

allangering said:

... Is it really cheaper to trade spot forex? ...

Click to expand...

I would say no, spot forex costs (commission + spread) is usually higher than futures unless one is trading large size (fx futures often have only 5 - 30 contracts available on each side at the inside price so big trades are going to spike the price).

However the article omits the main disadvantage of currency futures - liquidity is only available in 6 currencies vs the US dollar - so crosses have to be done as two separate transactions multiplying the cost.