Is there any difference between trading SPY and eminis except leverage? i.e . you get a lot more leverage in futures...
I would think that trading SPY will cost you more in commisions. Also, the tax situation of stocks vs. futures. I admit I am bias towards futures trading. I heard ETFs were not as liquid as futures but that is hear say.
Not long ago, I asked the same question. I trade SPY for the reasons below. 1. I'm prop, but leverage issue is nonfactor. 2. trading SPY can actually be cheaper depending on your base commission and if you add liquidity most of the times. 3. tax issue non-factor since I'm prop and file K-1 I would still consider e-mini if I had enough money since it's 3-4X more liquid than SPY. if anyone has a different opinion, please correct me.
maybe another reason to consider ES is longer hours? anyway, take a look at this thread.....I'm sure you can find more info. http://www.elitetrader.com/vb/showthread.php?s=&threadid=147189&highlight=ES+spy