Why trade FOREX when you can get 20:1 leverage with the futures and you have more liquidity meaning NO PIP spread! I can get in and out at MY PRICE not 4-5 PIP SPREAD.
See if you're happy about the fill on your stop loss in a fast market moving against you...slippage where you want it the least. To me, the guaranteed counterparty on my stop loss is the one primary difference between the currency futures and the retail fx brokers, because between commissions and the spread, currency futures appear to have almost the same transaction costs as retail fx. The only thing better would be (regulated, exchange-traded) currency options where one could clearly identify and manage the $-at-risk...but those do not appear to be readily available to the small retail trader. This may differ for size, I am not playing in that sandbox yet.
you are decieved my friend if you really think that your stop loss is guaranteed. Read the fine print in your account forms and you will see that there is no such thing. Many FX dealers boast about thier software and how it can take you out of the market if the trade goes against you. What they are actually doing is taking the opposite end of your trade so that in effect you are trading against the dealer. Also instead of charging you a commission they are making the PIP spread against you as PURE PROFIT! So that way they can say that they guarantee you you stop loss. As for FAST MARKETs i have traded those and have been on both sides of the equation. Forex can be more fatal to your financial well being because (1) the leverage can be more. (2) FX usually moves more than the Currency Futures contract! So if you are on the wrong side of the trade in a fast mkt and the FX dealers software fails like what happend on 9/11 when the BP ES SF etc. parabolically moved 1000 points in an instant who do you think ate that?...............not the FX dealer my friend but rather YOU.
What about your currency futures contract? How would you have faired in an event such as 9/11? Would you have been in a position that you weren't watching? Would you have had a stop loss on GLOBEX? Do you know how non-native stop orders are handled on GLOBEX? How do you handle this type of risk? Really, the personal nature of this is all moot. I have personally not yet met one single person who's had a stop loss hit in fairly extreme market conditions who can validate the "guaranteed" stop loss, and I come at this only knowing how GLOBEX operates in fast market conditions. I don't sit comfortably with a stop-loss out on GLOBEX, and that matters to me when I am taking multi-hour long positions out and cannot watch them. And so I find the "guaranteed" stop loss an attractive feature of retail forex. It would be nice to have some empirical evidence on this though. And I am not really here to defend a practice that no one can validate practice and rules of either, due to the shoddy regulation of the forex dealers. But even sans the (useless) SEC, you've got CFTC and NFA for what they're worth. I appreciate the SPAN margin approach used in the futures markets as a good compromise between leverage and a safeguard on the promise between counterparties...I would hope that retail forex can get out of the shadows and clarify their practices too. How good is the guarantee when it is directly dependent on the risk management of the (unregulated) firm you are trading with? But nevertheless, I mention it because it's relevant to mini-forex account traders, and it was relevant to me. Yes, if you have $25k+ on the line, you are going to want far more guarantees, and I am still researching that aspect of retail forex. But from what I have seen, the guarantee stands to $2 million. You say you've been on both sides of it...have you had a stop loss not be upheld by a CFTC or NFA regulated forex dealer?
i think you should try another drug, i want to pay that commission instead of feeding those croocked brokers with the spread. Its much cheaper in the end. Do you think they really do it for free ...
I think you should try another drug too, you think you are the only one who make market in currency futures? Currency futures are like every other instruments, some big banks are making a market in it.
try to get the point for once, yes banks make a market in it, several, which leads to much smaller spreads, if you save one pip, you make almost three times your commission back for a rt. I think i can save 1 pip on almost every trade i make compared to all forex brokers in euro/usd. If like some the bid-ask is 5 pips i might save as much as 3 pips per rt= 12.5*3= 37.5 USD, i'm gladly willing to pay 4.8 usd for that.