High execution quality and speed

It is only with Forex trading that a trader can experience high execution quality and speed because of its high trading ratio as compared to any other market. The reason why futures market does not offer rapid execution or price is due to the lesser volume of trading and liquidity and definitely due to uncertainty during normal market conditions, as the trading prices on market orders is far from certain. Read as to what makes the Forex currency to move.

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Forex - Return on Investment

As predicted, the rates begin to rise and then you decide a favorable rate at which you plan to sell your Euros to get a hefty profit. Supposing the Euro rises to 1.5090/93. Now, to realize your profits, you sell 100,000 euros at the current rate of 1.5090, and receive $150,900.
You bought 100k Euros at 1.5030, paying $150,300. You sold 100k Euros at 1.5090, receiving $150900. That's a difference of $600 or in other words, you successfully earned a profit of $600.
Return on Investment = $600

Forex - Cycle for Stocks

In the market, the shares of the company are trading at 16 cents a share. With 250 million shares outstanding, the company has a market capitalisation of $40 million. That works out to be 6.4 times its historical earnings, and four times your expected earnings for this year.
In the meantime, the company continues to execute on its strategy and is doing all the right things amid a conducive macro environment. It again delivers a strong set of earnings.
That convinces a few analysts who begin to issue research reports on the company. Professional fund managers also start to buy the stock on expectation of its 30 per cent earnings growth next year.

Handling Forex

The enormous size of the Forex market gives it the speed and liquidity like no other financial world market. Losses exist, but Profits are even higher! But just like any other speculative trade, amplified risks are involved along with the probability for a higher profit/loss.

Forex trading - Commission free

Futures trading contracts get along with them, trading costs, exchange fees and clearance fees which eat up most of the trader's profits. Although, there is always an initiating cost to any trading being done, which is revealed in the bid/ask spread, present in all types of trading, be it Forex, Futures or Equities. But this is not the case with Forex trading because here, the trader deals directly with the market through online exchange, thus saving the brokerage fees.


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Superior liquidity

Forex is the largest and most liquid market in the world. It can absorb a large trading volume and the transaction sizes are huge too, in comparison to any other market. Forex markets hold unmatched liquidity as compared to currency futures. Especially with $1.5 trillion changing hands daily. Futures market, on the other hand, is a $30 billion market per day which provides only limited liquidity with a lesser trading volume.

24-Hour Market

This facility cannot be availed with the futures market which only operates during business hours and not for 24 hours a day.
Currency market is a 24-hour market, unlike most of the futures exchanges, allowing its traders to react to the immediate news happenings by trading immediately.

Forex vs. Futures

In other words, futures are the same as forward exchange deals, which are tailor made to the customer requirements and needs for the amount of funds and due date of deal.There are plenty benefits of Forex over currency futures trading, especially with the difference between the two regarding their target audience, transactions fees and liquidity.

Forex vs. Futures

Futures, on the other hand, deals in contracts to buy or sell a foreign currency on a specific date in the future, the price for which is set today.
Being the largest financial market in the world, Foreign Exchange market deals in the business of trading of the world's various currencies, with more than $1.5 trillion changing hands every day.