Difference Between Forex vs Futures

The forex market is not only way ahead of the stock market, it also supersedes the futures market with its numerous benefits.

Some of them are as follows:


On a daily basis, the trading in forex goes up to approximately 5.3 trillion dollars. This particular aspect makes forex the most liquid market globally.

Due to the great transaction sizes and high trading volume, this market is way ahead of all other stock markets.

On a daily basis, 30 billion dollars are traded on the futures market.

Except for volatile market conditions, the forex market is highly liquid which greatly benefits the traders. This implies that the executed orders can be stopped with minimal slippage.

24-Hour Market

According to the time zone in Sydney, trading at forex begins as the markets open. Then the circle goes on and the market remains open until New York time zone. This means that the forex market never sleeps. No matter which country you’re in you can trade at any given time without having to wait or face any problem.  This way, the traders may also be able to save themselves from the unfortunate circumstances or act accordingly in their favor.

In the futures contract, there are overnight markets, however they are not traded as much as the spot forex market.  

Minimal or No Commissions

Forex offers “Bid/Ask Spread” to its retail brokers in order to reimburse them for their services. Additionally, there are no brokerage, government, exchange or clearing fees.

Most of the times, you’ve to pay commissions to the brokers as the Electronic Communications Brokers have become exceptionally popular.

However, the futures market costs a lot more than forex. Due to high competition among spot forex brokers, the traders usually get themselves the best deal.

Price Certainty

Keeping in mind the usual market conditions, the orders are executed on an immediate basis with price certainty. On the other hand, there is no quick order execution of certainty of price in the equities or futures markets.

The limited guarantees on the execution time of the order and initiation of electronic trading make the room for price uncertainty in the equities or futures market.

Guaranteed Limited Risk

Risk is in fact minimized on the spot forex market since the online capabilities of the trading platform will immediately create a margin call in case the essential margin amount exceeds the accessible trading capital in the account of the participants.

Traders must have position limits in order to manage the factor of risk. During regular market circumstances, all open positions will likely be closed instantly (during fast market problems, the placement of traders could be shut beyond their stop loss level).

In the futures market, you’re likely to be liable for every ensuing deficit in the bank account.

Now you decide who the winner here is!

  • BrokerEUR/USD
    City Index 0.5pips (fixed) margin: 3.33%
    OANDA 1.3pips (variable) margin: 3.33%
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