5 Reasons Forex Traders Are Moving to Futures

By NinjaTrader Team

In the ever-evolving landscape of financial trading, forex traders increasingly face more challenges and obstacles to achieving their trading goals. As a result, many forex traders are making the decision to shift their trading to currency futures and access all the benefits and features futures trading has to offer. 

Currency futures allow traders to capitalize on currency market moves with the ability to trade all major currencies against the U.S. dollar, including the Euro (6E), British pound (6B), Japanese yen (6J), Swiss franc (6F), Canadian dollar (6C), Aussie dollar (6A), and New Zealand dollar (6Z). Traders can capture potential trading opportunities in these dynamic markets trading through CME Globex. 

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Let’s check out five reasons more forex traders are making the move to futures.  

  1. Price Transparency. One of the unique features of the futures market is price and order transparency. Since all transactions take place on one centralized exchange with full transparency, all orders and  positions are fully disclosed to all traders in real time, putting every trader regardless of size on a fair and level playing field. 

  2. Well-Regulated Markets. Futures trading takes place on a well-regulated and well-established exchange that guarantees all transactions for all parties. Unlike a forex dealer, who often takes the other side of a trade and sets it to the bid-ask spread, a futures broker like NinjaTrader solely provides access to the futures markets and is not working actively against traders. 

  3. Trading Flexibility. Like forex, futures offer virtually 24-hour trading, with Globex markets opening Sunday at 6:00 pm ET with good liquidity in most markets. Many of the popular futures markets come in two contract sizes: full-size standard and micro-sized—which provide a lower cost to trade, flexible trade sizing, and risk management.  

  4. No Overnight Carry Trade With Same-Day Settlement. Unlike forex, in futures there are no overnight interest rate (carry/swap) fees. Futures offer faster trade settlement; they’re immediate, with buying power adjusted in real time. On the other hand, it can take up to two days for a forex trade to clear and release funds back into your account.  

  5. More Diverse Markets to Trade. Not only do futures provide access to trade all the major forex currencies, but they can also help diversify your market exposure. Futures contracts span a wide array of financial instruments including stock indexes, Bitcoin, bonds, energies, precious metals, and many others.  

Jumpstart Your Futures Trading Journey With the #1 Rated Futures Broker

NinjaTrader's powerful, flexible trading platform and resources are here to help you be the best futures trader you can be. Whether you’re new to futures or a seasoned vet, we have you covered with our award-winning platform and brokerage services, featuring: 

  • Daily livestreams and on-demand videos  
  • Expert education and tips  
  • Risk-free simulated trading with live data 
  • Simple pricing and no deposit minimum 
  • Low margins and commissions  
  • 1,000+ third-party tools and apps  
  • 100+ technical analysis tools  
  • 24/5 live support 

New to futures or NinjaTrader? Sharpen your skills and test your ideas and strategies risk-free in our simulated trading environment, with 14 days of free real-time market data. Open your free account today

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