September 26, 2018

What is the difference of Forex (Foreign Exchange) and Futures markets?

Many investors do not know the difference of Forex and Futures market.

forex-futures-market-financial-difference forex-futures-market-financial-difference

What is the difference between Forex market and the futures market?

The majority of traders-beginners quite often can not understand the difference between Forex and the futures market.

This fact can lead to the wrong choice of the further trading platform.

That is why before commencing your own financial activity and trading it is worth finding out the difference which exists between the futures market and Forex.

First of all it important to understand that the futures market performs some kind of trading platform for the execution of futures contracts.

In this market parties usually make transactions to buy/sell some commodities and shares the price of which is fixed by the futures contract.

Some major differences of ‘Forex’ and ‘Futures’

There is not a considerable difference between the futures market and Forex for brokers as irrespective of the type of sales they receive their interests from every transaction which finally brings them profit.

As for traders there an obvious difference for them.

If in Forex trading is performed in the single market, futures trading implies transactions only in the frames of a particular stock market with a certain contract.

It is worth noting that one of the advantages of Forex market is its liquidity allowing to realize assets within the shortest possible time and with a big profit for the trader.

Moreover, in the futures market there is not such a notion as spread, the market does not provide a leverage to the trader which clearly distinguishes it from Forex.

Invest in Forex and Futures market online

Forex market is biggest

Forex market is the biggest trading platform in the world with the highest liquidity.

The total amount of daily transactions made in the market reaches 1.5 billion dollars.

In the futures market this turnover is considerably less and takes up around 25 million dollars.

Forex market runs 24/7

One more thing is that Forex works almost 24/7 without any restrictions for the traders which allows to make transactions according to the chosen strategy at the most convenient time.

The futures market is not so flexible.

One can make transactions only at clear-cut time.

An obvious disadvantage of the futures market is the necessity to pay for different services via mediators which does not really satisfies traders.

The plus of Forex market is that a trader has the opportunity to manage only the amount available on the account in contrast to the futures market where the transaction can be closed with negative positions followed by after-payment.

Forex market can probably offer more opportunities to traders-beginners as it does not require a big capital to start trading.

And finally the chance to improve and master new trading platforms will finally allow a trader to achieve a new, higher professional level and increase funds.

List of Online Brokers

All Forex Brokers

  • IFC Markets
  • FxPro
  • IronFX
  • Axiory
  • FBS
  • Land-FX
  • MyFX Markets
  • Titan FX
  • Traders Trust
  • XM
  • LMFX
  • FXDD
  • ForexClub
  • KVB Kunlun
  • Tradeview
  • EightCap
  • FXOpen
  • HotForex
  • FXGiants
  • Fortrade
  • CM Trading
  • InstaForex
  • ForexMart
  • Valutrades
  • AvaTrade
  • Yadix
  • RFXT
  • easyMarkets
  • JustForex
  • Swiss Markets
  • FXTM
  • HYCM
  • FP Markets
  • SimpleFX
  • IC Markets
  • Evolve Markets
  • Tickmill
  • Trade
  • UFX
  • Anzo Capital
  • LiteForex
  • 4xCube
  • OctaFX
  • Tifia
  • XTB
  • AAAFx
  • NordFX
  • FXGlory
  • Capex
  • ClickTrades
  • TopstepFX
  • HotForex ZA (South Africa)
  • XMTrading
  • GMOTrading
  • PaxForex
  • ITRADER Global
  • FortFS

All Crypto-Currency Exchanges

  • CEX.IO
  • HitBTC
  • Paxful
  • BitMEX
  • C-CEX
  • Binance
  • YObit
  • Wisebitcoin
  • Bibox
  • BKEX
  • CoinPark
  • CoinEx
  • CoinField
  • bybit
  • Bitpanda
  • WCX

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