Advantages of Forex vs. Futures

You pay zero commissions and exchange fees because PFG and T & K Futures are compensated by the bid/ask spread.

With T & K Futures you pay zero commissions and exchange fees. How can  we do that? Simple. Because you deal directly with the market maker, you eliminate both ticket costs and brokerage fees. There is still a cost to initiating any trade, but that cost is reflected in the typical bid/ask spread that all exchanges offer. T & K Futures receives a portion of the bid/ask. However, PFG offers tight and competitive spreads. To try out the PFG trading station FREE demo click here, or to open an account right now, click here.

You get increased leverage capabilities.

The sheer size of the forex market ( greater than all futures markets combined) and the greater price stability allow you to trade with a much higher degree of leverage than is typical with futures contracts -- up to 25 to 1. Leverage is a double edged sword because without proper risk management this high degree of leverage can lead to large losses. Plus, you are able to select the degree of leverage that you wish to employ in trading. Unless you specify otherwise, PFG sets your leverage level. The actual margin requirements for leverage vary with account size. For example if your account has $30,000 in it, then the margin requirement is $2,500 for every position (approximately equal to $100,000 worth of currencies). Thus, the minimum margin requirement is just 2.5% of the total value of the currencies traded - a 40 to 1 ratio. As a currency trader you must keep in mind that higher leverage also increased your risk at a proportionate level therefore increased losses can also occur. Please keep in mind that leverage can work for or against you. Significant losses can occur in forex trading. Use only risk capital when investing in forex.

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You have peace of mind knowing you'll never be liable for a debit balance.

With PFG, you can NEVER have a debit balance! In the event that funds in your account fall below margin requirements, the PFG dealing desk may close all open positions. That means that, even if you are dead wrong and there is a catastrophic market move against you, you can never lose more than the amount of money you have in your account. That provides you with tremendous peace of mind. See for yourself by making a few risk-free virtual trades in your Trading Platform demo account. Open a Demo

You get maximum liquidity.

Due to its enormous size, the forex market is the most liquid market in the world. The spot forex market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. This means that positions can be liquidated and stop orders executed and PFG will use their best efforts to fill your trade at the price requested.

You can easily trade 24 hours a day.

The forex market is a seamless, 24-hour market. At 5:15 PM Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 PM the Tokyo market opens, followed by London at 2 AM, and finally New York at 8 AM. As a trader, this allows you to react to favorable or unfavorable news by trading immediately. It also gives you the added flexibility of determining your trading day. You get rapid execution.

With PFG forex trading you get rapid execution (under normal conditions) and price certainty on all orders up to $1 million. On the PFG trading station, you trade directly off real time streaming prices. PFG will use its best efforts to fill your trade at the execution price requested. This holds true even during volatile times and fast moving markets. Real time streaming prices ensure that market orders, stops, and limits are executed using PFG's best efforts at your requested price.

You never have to worry about rolling over your positions!

With PFG, open positions are rolled over automatically every two days. As a service to you, at 5:00 PM New York time PFG automatically rolls over all your open positions (swaps the trade forward) to the next settlement date two business days in the future. As is true with futures, there is often a carrying cost associated with rolling over a position. Moreover, forex positions sometimes can actually make you money on the roll-over. That is because your profit/cost is determined by the difference in interest rates between the two currencies. Thus, if you are long the currency with the higher interest rate in the pair, you will actually gain on the spot rollover through the premium relationship of that currency relative to the short currency. The amount of the gain is determined by the interest rate differential between the two currencies, and fluctuates day to day with the movement of prices. For instance, on any given day, the rollover can be $2 per lot for USD/JPY and $15 for GBP/JPY. Rollover fees are shown in dollars, and are posted in the "interest column" on the PFG trading station every day at 3:00 pm New York time. For day traders that never hold a position overnight, there are no carrying costs whatsoever. Try out the PFG Trade Station with a virtual account.

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