Yes. So forex.com and oanda are operating illegally in USA? What are you saying exactly?And they have little to do with SEC, they're regulated by NFA and CFTC.
Why don't trade with futures instead retail forex?
Best Broker for U.S. Retail Traders?
- Thread starter lentus
- Start date
Why don't trade with futures instead retail forex?
It's certainly an option.
I like more to trade in the 6E than the EUR/USD, I have volume, only one market price to buy and sell and no extra fees like nocturne financing. Interactive Brokers have a good brokerage services for futures. I use Ninjatrader brokerage but I want to change it because it's little expensive in trading fees.
Si mi inglés no es bueno perdona, hablo Español ajajaj
There are two major factors that currency futures are not as good as spot forex:
1. Futures leverage is lower than spot forex. On euro, overnight leverage is roughly equal to 75 times. While spot is 500 times.
2. GBP/JAP is the only pair I daytrading. You don't have this option in futures.
My broker's spread on GBP/JAP is 0.6 pip. If I trade with US allowed broker, I got 3.1 pip,plus 20 times leverage.
Yes, there is risk with offshare brokers.But that risk is less than 1/1000.In a 500 times leverage account I only need to put 1/10 money compared with US allowed broker account.So the risk is less than 1/10000.
If I trade with US allowed brokers, I will 100% go broke.
If you trade euro/usd, the spread comparision is 0.02 pip at offshare broker vs 1.3 pip at US allowed broker.
1. Futures leverage is lower than spot forex. On euro, overnight leverage is roughly equal to 75 times. While spot is 500 times.
2. GBP/JAP is the only pair I daytrading. You don't have this option in futures.
My broker's spread on GBP/JAP is 0.6 pip. If I trade with US allowed broker, I got 3.1 pip,plus 20 times leverage.
Yes, there is risk with offshare brokers.But that risk is less than 1/1000.In a 500 times leverage account I only need to put 1/10 money compared with US allowed broker account.So the risk is less than 1/10000.
If I trade with US allowed brokers, I will 100% go broke.
If you trade euro/usd, the spread comparision is 0.02 pip at offshare broker vs 1.3 pip at US allowed broker.
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You have reason in this, but I don't look it like a problem, with two lots of 6E I'm fine.
They are your preferences, this pair is more exotic, soo yes you can't trade in the futures markets of USA.
I hate this spreads, for this I changed to the futures markets. But well if you are making good returns, follow trading how you have been doing bro
But I will have a problem, and it's the volume. I trade with volume and for this I need to trade in centralized markets
Spot forex is the most liquid market, daily volume is 5 trillion.
euro/usd daily volume 1 trillion.
GBP/JPY daily volume about 280 billions.
It is much much higher than currency futures.
(I made a rough calculation based on euro/usd daily volume on spot forex and currency futures,that spot forex is 100 times more liquid than currency futures,assuming forex trading with 500 times leverage, and currency futures trading with $1000/contract.)
https://fxssi.com/most-liquid-currency-pairs
euro/usd daily volume 1 trillion.
GBP/JPY daily volume about 280 billions.
It is much much higher than currency futures.
(I made a rough calculation based on euro/usd daily volume on spot forex and currency futures,that spot forex is 100 times more liquid than currency futures,assuming forex trading with 500 times leverage, and currency futures trading with $1000/contract.)
https://fxssi.com/most-liquid-currency-pairs
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No bro, when I said volume I mean the volume indicator, the register of all activity that happened in the market in a period of time. I don't trade with RSI and anothers technicals indicators, I trade looking at volume and price action and in the spot Forex I will never have all the volume registration because it's an uncentralized market. For this I need a CME group or a NYSE/NASDAQ when all the trades are recorded.
I know a guy on a forum who trades forex with volume indicator.
This is his post:
"In the distant past, I worked with futures, especially with calculating Order
Flow from the Time and Sales. But most of my clients blew their accounts,
as they were over-committed. So I morphed everything into Forex, synthesized
Time and Sales and calculated Order Flow, direction, etc… in Forex.
Then I realized that most Forex traders are failed flunkees from Futures, so
most of 'em have no money. Nevertheless, I then moved into Currency
Analytics, but merged that stuff with the Order Flow and Market Depth
prediction stuff. So the only thing I’d say is that for Futures contracts
where the underlying is Forex, I can help; but sorry I don’t know anything
about Ninja 8."
https://forums.babypips.com/t/going-offshore-to-escape-the-cftc/35612/7334
I another post he said he can predict market by his method.
"When Trading News at any broker, do not be “chasing”. Rather,
be in your position either before, or after the volatility settles down.
For me, I’m in early with an offer, since I believe I can predict the direction
from analytics… otherwise, I’d be guessing which is not recommended !"
https://forums.babypips.com/t/going-offshore-to-escape-the-cftc/35612/7281
This is his post:
"In the distant past, I worked with futures, especially with calculating Order
Flow from the Time and Sales. But most of my clients blew their accounts,
as they were over-committed. So I morphed everything into Forex, synthesized
Time and Sales and calculated Order Flow, direction, etc… in Forex.
Then I realized that most Forex traders are failed flunkees from Futures, so
most of 'em have no money. Nevertheless, I then moved into Currency
Analytics, but merged that stuff with the Order Flow and Market Depth
prediction stuff. So the only thing I’d say is that for Futures contracts
where the underlying is Forex, I can help; but sorry I don’t know anything
about Ninja 8."
https://forums.babypips.com/t/going-offshore-to-escape-the-cftc/35612/7334
I another post he said he can predict market by his method.
"When Trading News at any broker, do not be “chasing”. Rather,
be in your position either before, or after the volatility settles down.
For me, I’m in early with an offer, since I believe I can predict the direction
from analytics… otherwise, I’d be guessing which is not recommended !"
https://forums.babypips.com/t/going-offshore-to-escape-the-cftc/35612/7281
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