FX Futures.com | Forex Q & A - FX Futures vs. Cash Forex

Daniels Trading has a very strong focus on trader education and overall market awareness. This emphasis is in keeping with our mission of providing “Excellence Through Execution”. Traders in this day and age are presented with an incredible number of choices of brokerage firms and trading vehicles. Ensuring that our customers make informed choices is our responsibility.

The following are vital questions that all individual traders should ask their Foreign Exchange trading firm:

What are the spreads offered for the most liquid currency contracts vs. the USD?
Do I have the ability to place an order between the bid/offer spread? If no, why not?
Are my trades executed on an exchange, the inter-bank market or is the firm counter-party to my trade?
If you are counter-party to my trades, does that mean that every dollar I lose is your gain? Is that a conflict of interest?
Do I have the ability to see the depth-of-market, the order book?
In markets such as equities and Exchange Traded Funds (ETFs), the price data is supplied by an exchange which is an independent third party. How is price data derived and delivered?
How can I verify time/sales information of actual trades?
Is the market regulated and by which governing body?
Are my funds insured or held in segregated accounts away from firm capital?
With the collapse of REFCO and REFCO FX, have any customers ever lost funds due to a firm going bankrupt?
Many cash FX firms advertise “zero commissions”, while others disclose that they make money on the pip (bid/offer) spread. What are my exact costs for trading and if you make money on the pip spread, how much?

Once the questions above have been answered, compare them to the very same questions answered from the perspective of FX Futures.

FX Q & A - You be the Judge!

FX Futures vs. FX Cash - Vital questions to help you decide

Then…You be the Judge!