The major difference between Forex and Futures investments is
High liquidity –
Foreign exchange market’s daily trading volume is estimated to be 1.4 trillion US Dollars. This makes it the largest and most capitalized financial market in the world. Other financial markets are smaller than the volume of foreign exchange trading. You will get a better idea of how liquid the futures market is if you trade on a daily basis with three hundred dollars.
24 Hours a Day
Foreign exchange trading is open 24 hours a day. Foreign exchange transactions began in Sydney, Australia at 5pm EST on Sunday. They opened at 7:15 in Tokyo, Japan and then opened at 2 a.m. in London, England. It is eight o’clock AM in New York, USA. Investors have the option to respond quickly and easily in the fx market. Flexible planning is possible for investors, which allows them to plan for exit or entry at any time.
There are some restrictions regarding business hours in comparison to the US foreign currency futures market like the Chicago Mercantile Exchange and the Philadelphia Exchange. The Chicago Mercantile Exchange has business hours from 8:20 EST to 2 p.m. So if there is any news from London or Tokyo, it will be confusing the next day opening.
Quality and speed of transaction-
Every transaction in the futures markets has a unique transaction date, price and contract content. The following experiences are common to futures traders. Future traders must wait half an hour to trade and the final transaction price must differ. Although electronic trading is now protected and transactions are restricted, market orders can still be traded. Forex market traders and investors can trade in real time market quotes. They can also offer instant deals and stable quotes, even when the market has reached its maximum and is unable to close. The uncertainty in the transaction price of futures markets is due to the fact that all orders are combined via a central exchange. This limits the number of traders and funds flowing, as well as the amount of transactions at the same price.
Foreign exchange trading commission free-
Futures market investors have to pay additional fees, commissions, or charges. Every financial product has a bid and ask price. The spread, or cost of the transaction, is the difference between the bid and ask price. The unreasonable spread of futures markets has been a reality for many years, despite the lack of transparency. Investors can now use the online trading platform’s bid and ask prices to assess the market depth and real transaction costs. Foreign exchange trading spreads much less than futures trading, particularly after-hours trading. Futures investors are more vulnerable to low liquidity and can suffer huge losses.