Fxcm
- Thread starter EugenB
- Start date
This is true, but crosses and non majors tend to have a larger spread and are riskier. My main goal is to minimize risk, then I think about profits.
If you have carry trade positions (yen / iceland kcrona), you obviously need intra bank, but it is intra bank and not forex shops, and we are talking about very large positions, which are out of realm of majority of retail traders.
Most of the strategies can be achieved with major pairs and therefore with futures. I try to keep things simple, it really helps.
Regards,
redduke
If you have carry trade positions (yen / iceland kcrona), you obviously need intra bank, but it is intra bank and not forex shops, and we are talking about very large positions, which are out of realm of majority of retail traders.
Most of the strategies can be achieved with major pairs and therefore with futures. I try to keep things simple, it really helps.
Regards,
redduke
Quote from RedDuke:
With all this info, give me a reason to stay and trade forex and not switch to currency futures.
This subject, it seems, has been coming up on ET an awful lot, and, speaking for myself, it's getting tiring.
There are MANY key advantages currency futures hold over cash forex. And... there are MANY key advantages cash forex holds over currency futures. Both have been discussed here, repeatedly.
Furthermore, "forex", "spot forex", "cash forex" or even "retail forex" are anything but homogeneous. Dramatic differences exist among dealers, brokers and ECNs; lumping them all together into one big gray mass, to stay away from, is both grossly inaccurate and shortchanges yourself, the trader. The choices you make matter, a great deal.
The bottom line is, as always: it depends on who you are and how you trade.
In particular, as I've stated before: any would-be currency trader with less than $10,000 - $20,000, at the very least, should NOT trade currency futures. They'd find themselves critically undercapitalized, right from the start. For better or for worse, that includes the majority of retail traders. There's one extremely good reason.
Hi Late_apex,
This actually is a bad reason. If one is undercapitalized and not able to afford trading 1 currency contract, he should not be trading. Instead, getting a job to make at least some small stake and then consider trading. Letâs call it retail forex, does allow one to trade with minimum capital, and if someone wants to feel what it is like to trade with real money it is Ok. But if you want to trim costs, lower risk and trade in regulated environment, even if you only have 10-20k, I do not see a value in trading retail forex. I still have an account with oanda, but finally realized the advantages of futures (cheaper, central exchange, regulated). The only pair where costs are closer to futures is eur/usd at oanda with 1.5 pips spread.
Regards,
redduke
This actually is a bad reason. If one is undercapitalized and not able to afford trading 1 currency contract, he should not be trading. Instead, getting a job to make at least some small stake and then consider trading. Letâs call it retail forex, does allow one to trade with minimum capital, and if someone wants to feel what it is like to trade with real money it is Ok. But if you want to trim costs, lower risk and trade in regulated environment, even if you only have 10-20k, I do not see a value in trading retail forex. I still have an account with oanda, but finally realized the advantages of futures (cheaper, central exchange, regulated). The only pair where costs are closer to futures is eur/usd at oanda with 1.5 pips spread.
Regards,
redduke
whats the difference between an ecn and a market maker broker what are the pros and cons