The difference between foreign exchange investment and futures investment

futures vs exchange

Posted by GRY on November 5, 2018

The liquidity of the foreign exchange is higher

The spot foreign exchange market trades $1.4 trillion a day, making it the world’s largest and most capital-liquid financial market. The size of other financial markets pales in comparison with trading volumes and foreign exchange markets. If you use the futures market, which trades only $3 billion a day, you will have a clearer idea of how liquid the money is. Foreign exchange markets are always liquid and can be traded or closed whenever possible.

The foreign exchange markets for 24 hours

The foreign exchange market is a 24-hour market, and on Sunday at 5:00 p.m., the foreign exchange transactions start at the snow pear in Australia, and then the Japanese Tokyo opens at 7:00, and then the British London, which starts at 2:00 in the morning, and then it ends in New York, at 8:00 a.m.

For investors, no matter when and where there is any news, investors can be instant response. Investors can also be flexible about the timing of entry or exit.

Relative to the foreign exchange futures markets in the United States, such as the Chicago mercantile exchange or the Philadelphia stock exchange, the business has a certain time limit. In terms of the Chicago mercantile exchange, operating time is eastern time 20 began at 8 o ‘clock in the morning until 2:00 in the afternoon, so if any important news is not in London or Tokyo, operating time is the second day early morning can become very confusion.

The quality and speed of foreign exchange transactions are higher

Each trade in the futures market has a different date, price or contract. Every futures trader has the following experience. A futures transaction usually takes about half an hour to close, and the final price must be very different. Although there are now electronic transaction assistance and limited transaction guarantees, but the transaction of market sheet is still quite unstable.

Offers a stable offer and an instant deal. Investors can close a deal with an instant market offer on an online trading platform. Even when the market is at its busiest, there is no difference between the market price and the transaction price. In the futures market, the uncertainty is because all orders are placed through centralized exchanges, which limits the number of people trading at the same price, the flow of money and the total amount traded. Our instant quote system ensures that all market orders, limit orders, or stop-loss orders are completed.

Foreign exchange transactions are free of commission

In the futures market to buy and sell, in addition to the price difference, investors have to bear additional commissions or commissions. All financial goods have purchase and sale prices, and the difference between them is defined as the price difference, or the cost of the transaction. To this day, because of the lack of transparency, futures market unreasonable spread is still a fact. Now, investors can judge the depth of the market and the true transaction costs by the purchase and sale prices immediately displayed by the online trading platform. Spreads on foreign exchange trades are much lower than those on futures contracts, especially in after-hours trading, where investors are vulnerable to a big loss due to low liquidity.


There is no commission or handling charge for online foreign exchange transactions at FXCM, whether through phone or Internet. The structure of otc transactions in foreign exchange markets reduces the cost of exchange and clearing and therefore reduces the cost of transactions. In addition, through Internet technology, investors can instantly see the FXCM exchange rate, which also reduces the cost of exchange, so there is no commission or fee problem. All investors can be bought and sold on the basis of an immediate offer, and the futures are only quoted at the last transaction price, which is not applicable to the market price of the transaction, while the actual transaction cost is concealed.