Futures vs. Forex?

I'm sure this is a commonly asked/stupid question, but does anyone with both experience in cash forex and futures (any kind, not just forex) care to weigh in on their contrast/comparison? I am into forex right now, but as I expand I'd like to get into futures next, and eventually stocks. Any insight is appreciated

 

SIF's differ a lot from cash forex, I am succesfull at the latter, not so at the former, guess that says enough, and it's not like I didn't put any effort into it, I tried to slice and dice them in hundreds of ways ...

 

I would like to know what others think also.

 

I remember when I first started in fx, i remember how boring and slow it was. But remember that you get a lot more leverage in fx that ANY other market, so the profit potential is there if your patient and you know what your doing.

 

If in the USA:

your futures trading accounts are segregated and backed by several layers of protection

your forex trading account is based on "please please Mr. Broker, please don't go out of business and take a lot of my $$$ with you or hang my account up for months or years while trying to sort out your assets." If you were a Refco customer, you understand this.

Or even "please don't trade against me (research dealing or no-dealing desk). If you have longterm forex account, you may understand this.

I wouldn't touch a pure forex broker with an 11 foot rope.

If you covet and wish to seriously use much higher leverage, you DON'T understand anything.

Commodities have a more favorable tax situation, taxed at 60/40 cap gain ratio. It is hard to beat if you make serious trading $$$. Plus, year end tax reporting is a breeze.

Also, forex is a hard nut to crack for longterm profits. Electronic currency futures provide what most need.

That seems to cover it.

 

daytrading forex is too slow too flat to daytrade.


daytrading futures is better.

 

as a trader, your goal is maximize the return on your limited capital in your account.

should you trade forex or futures.

the answer is which makes more money given the limited capital and time that you have.

IMO, futures is 'more profitable' given the return on limited capital intra-day and time spent on the trade.

 

three remarks

only trade fx through a broker with the ECN model, that way your broker doesn't trade against you (I personally use IB, they have additional protection for your account, I'm satisfied with them)

I don't understand this 'too slow': I trade eur/usd off the 1 min chart most of the time, I can assure you that's not really slow most of the times during the european session

taxes depend on the country you reside in: if you trade through your own company for example fx doesn't get taxed in my country, whereas futures do get taxed.

 

FX trading accounts are insured for this very reason, yes?

 

"Forex Capital Markets (FXCM) and 300 former Refco FX Associates LLC customers have lost a constructive trust case they brought against the company in an effort to reclaim $10.6 million dollars tied up in the bankruptcy since October 2005.

Lawyers for Refco Account Holders had argued that Refco held the FX traders' property in a bailor/bailee relationship, in which a bailor, or property owner, gives possession of property to a bailee, or custodian, but retains ownership of the property, according to Paul Palley, a member of the RFX customer group that brought the lawsuit. But the judge dismissed the case because cash, not property, was involved. As a result, RFX customers could receive as little as 18¢ on the dollar. The group continues to petition the court and claims it is entitled to CFTC protection, a claim the CFTC denies.
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