Forex Prop Firm CFDs vs Futures
Forex Prop Firm vs Futures – Key Takeaways
- Prop firms can offer forex and CFDs or futures
- Forex / CFD prop firms offer more symbols and flexibility
- Futures prop firms have a limited product offering that come with restrictions
- Forex & CFD prop firm challenges are often more difficult than futures
Futures vs Forex in Prop Firms – Understanding the Difference
As prop firm trading has evolved, the ability to trade futures has now become a possibility with new prop firms exclusively offering futures trading to their client base. Check out our analysis in today’s post where we outline the major differences between forex / CFD prop firms and futures prop firms. As a starting point, we’ll provide a definition for futures and forex prop firms.
What is a Forex Prop Firm?
The majority of prop firms are classified as forex prop firms. At a forex / CFD prop, the liquidity offering makes it possible to trade cryptocurrency, single share stocks, indices, and commodities like oil, precious metals and soft commodities (wheat, soybeans, coffee). The 24 hour nature of forex prop firms is a major advantage since one can trade not only FX but crypto around the clock; many CFDs indices and commodities also have nearly 24 hour availability. Finally, forex prop firms offer greater lot size customization: mini lots, micro lots, and standard lot sizes.
How does a Futures Prop Firm Differ from a Forex Prop Firm?
A futures prop firm only offers products found on American futures exchanges. This means individual shares like Tesla and less common cryptocurrencies are not available for trading. Currency pairs are limited to the major names like the British Pound, Euro, and Japanese Yen with crypto being limited to Bitcoin and Ethereum. Additionally, futures do not have 24 hour markets where positions are closed out on a daily basis. Lot sizes customization is also limited where one can only choose between “Mini” and Standard contracts.
Compared to futures prop firms, forex prop firms offer more products with greater customization. While each prop firm sets their own standards, a common theme in many trading communities is that futures prop firm challenges tend to be easier to pass when compared to forex prop firms. Atomiq Consulting remains neutral in this regard as we are a technology vendor and consultant so we encourage traders to try out both to decide which type of prop firm is a better fit.
Futures vs Forex / CFDs – A Cost Benefit Analysis
| Feature | Forex & CFDs | Futures |
|---|---|---|
| Lot Size Customization | Flexible | Limited |
| Daily Closing of Positions | No | Yes |
| 24-Hour Trading | Yes | No |
| Trading Products | All | Limited |
| Price Feed Source | Liquidity Provider Specific | Chicago Mercantile Exchange (CME) |
Looking to Start Your Own Forex or Futures Prop Firm? – Contact Atomiq Consulting Today!
Atomiq Consulting offers everything needed to successfully start your own forex or futures prop firm. Our cutting edge technology is cost effective, supporting mobile, web, and Windows. Contact us today to schedule a full presentation. Additionally, we specialize in corporate services for prop firms. Our team can assist you with obtaining a license, registering your prop firm offshore or obtaining payment services like bank accounts and PSPs. With Atomiq Consulting the sky is the limit. To learn more contact us today!
How to Get a Forex / Futures Prop Firm? – Schedule a Call with a Consultant
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