FUTURES vs FX execution quality

[Javier]

I`vs been trading nice during some years the fx, tx to some brokers execution quality.
Now i afraid about futures, with is suppose is better but, can anyone tell me the difference?
Is really better? depends on the broker?

 

[rmorse]

FX would depend on the broker. The futures markets are not set by your broker, but by public and member orders.

 

[Javier]

tx morse =)

 

[rmorse]

I don't follow the FX markets. I'm interested to know how tight and liquid the most popular pairs are vs the non-deliverable markets on a typical FX platform. If anyone has done a cost comparison I'd like to see it. I can tell you that the one advantage of trading FX futures vs FX non-deliverables, is that your counterparty risk on futures is the CME and with FX non-deliverables it is your FCM.

 

[Javier]

ok thanx again for the help =)

 

[VPhantom]

I can tell you that the one advantage of trading FX futures vs FX non-deliverables, is that your counterparty risk on futures is the CME and with FX non-deliverables it is your FCM.

Yes, counterparty risk is a big reason why I'm shifting my currency intentions from Forex to futures.

Also, with futures you have reliable volume/depth-of-market data and there's no margin interest cost while you hold positions.

Commissions though, might be cheaper on the Forex side (at least at a tight broker like say Interactive Brokers).

Also, if you're holding long-term, then obviously Forex offers the potential for interest carry trades whereas futures don't, but that's more "investment" than "trading".