Hi

I can't figure this one guys, what is tha benefit of using most forex brokers like FXCM for currency pairs paying a 1-3% spread when I can trade any major individual currency futures for $4.75round trip with a futures broker.

Am I missing a big benefit of trading forex pairs somewhere?

Thanks

Answer
Hi David,

It's a good question you're asking. Some forex brokers try to make it out like spots are far superior to futures, but the difference isn't that big. Other brokers offer both (see some at http://forextradingwinners.com/category/forex-broker-reviews).

Spots are generally cheaper to trade as there is mostly no commission. Spots are not regulated by the FTC either. Spots as you know are settled instantly as opposed to futures. This CAN be cheaper as well.

Spots are more flexible and come in different lot sizes. Futures are often only standard lots of 100,000.

Futures are more transparent and have more info available freely.

I want to open an ccount with one of the online forex brokers ,Which one in the UK is the best to go with?

I tried a lot of reviews , and all reviews point to one another as crap.Which one should i believe ?I am confused ,Could anyone give me some information or with experience would be grateful to you.

Answer
The reason you're finding a lot of crappy reviews is that forex trading is full of scams. Everyone wants to sell you signals and collect your commissions. Your question already has at least one blatant scam answer.

In real life, Foreign Exchange is a very large market populated by serious experienced professionals. With no experience, you would be a lamb among wolves. You would lose.

Whoever has convinced you that novice forex trading is a good idea has done you a grave disservice. Please reconsider.