Forex trading provides several advantages over futures-and equities trading.
Most important advantages are listed below.
Typical Leverage
Liquidity
Commissions
Short Selling Without an Uptick
Automated Margin Watcher
Trading Activity
Instant Order Execution
Commission - free trading
Forex Compared to Futures / EquitiesTable
Forex Trading
Equities Trading
Futures Trading
Typical Leverage Used
50:1 - 200:1
2:1
15:1
Liquidity
Daily Liquidity:
$1.9 Trillion
Limited
Limited
Commissions
Commission Free* Trading
Commissions / Other Fees
Commissions / Other Fees
Trading Activity
24 Hour Trading Market
6.5 Hours Trading
& After Hours**
6.5 Hours Trading
& After Hours**
Typical Start Capital
$1000
$25000
$2500
Instant Order Execution
Yes
No
No
Short Selling Without an Uptick
Yes
No
Yes
Automated Margin Watcher
Yes
?
?
? = Futures and equities markets generally do not have the ability to automatically close out trading positions once the account equity falls below the required margin; as a result, the possibility of a debit balance is far more real.
Most currency brokers*
Low liquidity when trading after hours**
Forex Daily Turnover compared to Futures Market, Equities Market and NY Stock Echange