Comparing with Forex Trading

There are many differences between trading forex and eminis. The first thing is fees, you’re looking at at least 4$ for a “round-trip” trade with a basic emini contract. With FX you just pay the spread, in many cases only 1 or 2 pips on the Euro and more for exotics, maybe 4 pips on Euro/JPY.  It’s cheaper then all of the comissions, that’s for sure.

It really depends on your style. If you need volume data as part of your system then forget about Forex as they don’t give you the real volume as it’s not a central marketplace like with eminis that are traded via the Chicago Mercantile Exchange.  Also, forex can be crazy volatile and erratic, bigger - badder ranges.  AND forex also has really amazing trends that just keep going and going.

Another advantage of forex is that you get more leverage which means you can bet higher risk if you want to. As a very general rule if your trading system is awesome and has a 90% winning rate with equal risk:reward then you could bet 5% of your account per trade as  a maximum. However you would need a much higher amount in your trading account to be able to trade at this level with eminis.

Personally I have been working with mostly fx and getting it to work for me. You can learn more at my site about automated forex trading and psychology of trading.