Is Trading futures better than trading CFD’s and Forex?

By John Thorpe, Senior Broker

Some may think this statement to be controversial.  Of course other viewpoints are always welcome and it would be fantastic to have an open discussion about the Similarities/Differences among the trading vehicles.  I can only hope that any traders out there that currently have active accounts with CFD’s or Forex give us a call and increase your opportunities for Success in trading.

The purpose of being a retail trader is to make money, Not because trading is cool, Not because trading is easy (fast money) but because you want to be profitable.  Trading is a business endeavor.  As with any business you want a level playing field.   Briefly,  I’ll bet you dollars to donuts your Forex account is not part of a trillion dollar market.

What your forex account is part of is a slick marketing machine, that offers every trader, trading “Their Market” the same trading platform. A platform developed by the same engineering team that created their own market place.  FX companies tout they are the most liquid markets in the world. When you have an account with an FX company , do they have a trillion dollars in Liquidity?  Laughable.  truth be told, you are trading against the house. Specifically the FX company’s algorithms and market makers.  , what are your chances for success now?  are third party platforms with different tools allowed with your FX trading account?    in order to have an edge, you want to trade against other retail traders, not the house. FX accounts do not allow you to do this.

To have a successful trading business you have to begin with the playing field that is the most level and I believe that is futures .  As traders we need to know:   How orders are being filled. What orders are being placed above and below. What volumes are going through at each price level and simply, how narrow is the Bid/Ask Spread   all of these are available to the futures trader.

it’s real time with no delay’s.   with Forex we often don’t see those or ,if we see price it may be delayed without us know that it is.    If you are trading Forex, the company can see your orders,   in the futures market, your orders are anonymous..    There is no free lunch.  If you are truly looking for an edge; better tools, better markets  you have to pay for quality, you can achieve your just rewards , with hard work, in a level playing field Choose Futures:   Next week ?  CFD’s vs Futures.

As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.