What's the Better Currency Trade:
Forex Futures or Spot FX?
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Which is Right for You?
The fact that forex dealers will split up a lot into very small slices makes the spot forex market the hands-down winner for small traders.
Larger retail traders should seriously consider the futures market as an alternative to the spot forex market. Trading costs are nearly identical, the exchange is more transparent, the product breadth is equivalent and interest is better.
Every trader should realize that trading cost differences are not just limited to whether or not you are paying commissions. Trading costs include average spread, commissions and interest premiums or charges. When looked at together, these two markets look a lot more similar than you may have thought.
You may also enjoy reading:
- Are Wealthy Investors Intelligent Ones?
- Flying High with Iron Condors
- 2009 Trading Outlook
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