SPOT or FUTURES

[tommogriff]

Hi,

Please can you give your advice on whether i should trade currency spot or futures? I like futures because i feel i have a better knowledge of them and the fact you trade in "lots" you know what you are getting in terms of "pounds per pip".

However i would consider myself a novice and i have heard it suggested that novice traders should familiarise themselfs with the market by trading the spot price. And also you can start trading in smaller amounts.

However trading the spot confuses me because you dont trade in "lots" it seems like exchanging money at the travel agents on a larger scale. I am not sure how much of a currency i would have to buy for one pip to equal £1 credit/debit per movement, I'd appreciate your comments.

Also if you could suggest any comapnies to trade through that handles UK accounts i would appreciate it,

thanks for your time

[tanveerb]

I can give you some valuable information. What is your email address so I can email it to you.

[KPcurrency]

There are many things to consider. Here is just one.

Most, if not all, traders would do well to think about minimizing their trading cost. If you trade the spot market, you can find a broker with a free data feed , free trading software, and no commissions. Of course you have to overcome the spread so there is a hidden commission, but it is said to be no commission.

If you trade futures, you have to pay commissions, pay for a data feed, and buy software. You also have exchange fees and order entry software fees (i.e. PATS).

Certainly some traders who trade the spot market still use esignal for data and software, but the point is you could get it for free. So that 100 dollars per month could be better used in a trading account. Metastock, for example costs more than 1000 dollars for the realtime version and you own it, but then you still have to pay for data, and that data is not the same as your broker may be quoting (for spot)

Plus, you need to include the amount of money you have to set up your account. Leaving how much you should have aside (in the end, the amount you have is the amount you have: it would be nice to have 20,000.00 to start but most don't), most spot fix brokers don't require as much to open an account as a futures broker would. You can open an account with some spot fix brokers for 300 dollars.

[tommogriff]

thanks for your reply guys.

Tanveerb, how can i give you my email without putting it on these boards?

[JanaSergeevna]

Originally posted by tommogriff
trading the spot confuses me because you dont trade in "lots"

Don't you? Since I have been living in the UK I have given up "direct access" and trade Forex by spread-betting. It seems to me to be much safer, more reliable, better service, smaller spreads than I paid before and there is also the little matter that all the profits are completely tax free. I am no expert on any other kind of trading, but I have difficulty understanding why UK traders should use anything other than a spread-bet for Forex trading.

[GigGun]

Originally posted by tanveerb
I can give you some valuable information. What is your email address so I can email it to you.

Why not just give it here? O yea you must be anther one just trolling for clients.