The Towers Of Foreign Exchange Business: Forex vs. Futures

The forex market also has bigger advantages over the futures market as well, and is very much bigger in size.

In Terms Of Liquidity,

The forex market trades over $3.8 trillion daily, while in the futures market, only trade as little as about $30 billion is per day.
You can’t compare mice to an elephant. This is outrageous!
Forex is the largest and most liquid market all over the globe. It can absorb trading volume, and transaction sizes, that makes it render other markets invisible per say, though they exist. The futures market has relatively limited liquidity.

In Terms Of 24-Hour Market

The Forex market is all round the clock, 24-hours, Sunday to Friday, Non-stop,
As a trader, this allows you to react to favorable or unfavorable news by trading immediately.
You can take advantage of important news release to capitalize on the futures market.
For example, if there is an important data release that comes in from the UK while the U.S. futures market is closed, the opening of the next market day could drive the price so great because the overnight markets in futures currency contracts still exist, but they are scarcely traded. This is because they are not very liquid, and are very inaccessible for the average investor.

In Terms Of commissions

The advent of internet has made it very possible for Electronic Communications Brokers to become popular and prevalent over the past couple of years.
Brokers in the forex market may require you to pay little commissions, which are peanuts compared to what traders pay in the futures market. Again, there is great competition among brokers in the fx spot market and you can easily get the best quotes at very low transaction costs, in the form of Spread.

In Terms Of Price Certainty

In the forex market, the price with which you enter a trade is certain under normal condition, and you can get instant execution of orders. In this case, what you see, is what you get (WYSIWYG).
On the other hand, you cannot get the certainty of price and instant execution of trade in the futures and equities market. The prices quoted by brokers may be that of the last trade. And it is not the price with which the contract will be filled for you. They often give you wrong quotes.

In Terms Of Limited Risk

There is room for traders to minimize risk in the foreign exchange market. This is set in the form of Lot Size depending on individual capital. The platform can even generate a Margin Call should your required Margin exceeds the available capital in your trading account.
Therefore, traders position are limit to minimize the risk of losing all their funds. Any open position in this case may close automatically under normal condition. But during any important economic release, it could close beyond your set stop.
Ok buddy, let’s see Mr Futures in this respect.
In the futures market, positions are liquidated at a huge loss than what you had in your account. You will also bear the deficit accrued in the account.