So it looks like a good retail forex broker, possibly even one that is not an ECN, is the better route. I suppose the liquidity in forex futures also tells which is the better choice. Forex futures make great sense for options and front months, something not available in currency markets-so there is still a reason to trade them sometimes. Tango 6, I can't tell if you are sarcastic or not in some of your sentences. I appreciate the advice-great words. I wish more people would know it...I might copy some of your phrasing to pass on. Full disclosure, I'm not a newbie trade. I consider myself a small trader because I trade retail accounts, but I still trade a good size and have plenty of cash and bonds for security (and prosperity/toys ). I sometimes say I'm a newbie because it's often annoying to say you are an expert on places like this website.
I thought the question was what is cheaper. If you are asking what is better, I like spot, and I like an ecn as opposed to a market maker, even if they claim they are not a dealing desk.
Yes who is cheaper...I guess better/cheaper is the same in finance. I wonder how many market makers are in currency future contracts...in other words, what would happen if you tried to move really big size. I think volume on some future currency contracts could double if a big firm focused exclusively on currency arb traded currency contracts.
yeah well. it's a triilion dollar market so size is the least of your worries. The future spot arb is going on all the time on the sub atomic time level so it's nothing you need to be concerned about. But a practical example is the small trader that wants to pyramid. Maybe he starts out with 100k, and if it moves in his favor he can add 75k and if it keeps going he can add 50k and finally 25k and that is a full load. Same thing on the other side, he starts with 100k and adds 125k as it moves against him then 150k and so on until he is wiped out. A small trader can't do that with futures because he simply doesn't have enough money.