Currency forwards are much more flexible than currency futures and in many cases more appropriate for a business looking to hedge it’s currency exposure.

Advantages of currency futures contracts:

  • Low margin
  • High liquidity
  • Costs are very low
  • Potential to profit without taking delivery

Disadvantages of currency futures contracts:

  • Mainly paper based
  • Set amounts traded in lots
  • Losses can exceed your account balance
  • restricted to professional traders
  • Some brokers do not allow delivery

You may also be interested in these sections:

Compare Vetted Investing, Trading & Currency Accounts

Investing Accounts Trading Platforms Currency Transfers
Compare Investment Accounts

Compare Investment Accounts

Compare Trading Platforms

Compare Trading Platforms

Compare Currency Brokers

Compare Currency Brokers

Looking for an institutional broker? Compare prime brokers here