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 firms have evolved, the ability to trade futures has now become a possibility among many prop firms. As a result a new class of prop firms have emerged, offering futures contracts instead of forex and CFDs.

What is a Forex Prop Firm?

The majority of prop firms started offering forex and CFDs: cryptocurrency, single share stocks, indices, and commodities. Forex and crypto pairs are traded on a 24 hour basis while CFDs have variable hours. Forex prop firms offer greater lot size customization with the ability to trade a variety of lot sizes.

What is a Futures Prop Firm?

A futures prop firm only offers products found on American futures exchanges. This means individual shares like Tesla are not available for trading and currency pairs are limited to the major names like the British Pound, Euro, and Japanese Yen. Additionally, futures do not have 24 hour markets where positions are closed out on a daily basis. It is also not possible to customize lot sizes.

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)

Partnering with Atomiq Consulting

Partnering with Atomiq Consulting to launch your proprietary trading firm ensures access to a comprehensive suite of services tailored for success in the forex industry. Our offerings encompass advanced trading technology, white-label platforms, and expert guidance on establishing both prop firms and traditional forex brokerages. With our support, you can navigate the complexities of setting up a prop trading firm efficiently and effectively.

To explore our services or schedule a demo, please contact us.


     

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