I have been trading Forex on and off for about 4 years now. When I've mentioned this to some people who actively trade in markets other than stocks, several times I've gotten the reaction "Why would you want to trade Forex?". When I say to speculate on currency trends, they say "You could do that a lot better in the futures market". Why would the futures market be considered better? I trade with Oanda, which allows me to pick any size trade - even as small as a single Euro for example. In the futures markets, there is one contract size, so a small trader such as myself cannot scale trades well. I was thinking maybe the transaction costs are higher, but I don't really see this. The spread I pay, at least for the Euro, is a pip or less. So assuming a trade the same size as a futures contract, I am only going to be paying around $10 round trip. I don't think most futures brokers are going to be less than that. Perhaps the transaction costs for Forex only become significant for larger trades? Or am I missing some other disadvantage to trading with a Forex account vs. a futures account?