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Topstep® is focused on Futures trading only, and we highly recommend Foreign Exchange Futures (FX Futures) to anyone with Forex experience. FX Futures and Forex are similar in that you trade one currency for another and they both track the spot cash, but FX Futures are what professionals trade because the price discovery is set by the trader, not the broker or institution.
Yes, if you are a novice or a veteran trader at the end of the day trading is trading. Whether it is stocks, options, futures, or FX, the market moves based on supply and demand and that supply and demand can get plotted on a chart where price movement can get analyzed with trendlines or your favorite indicator.
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With standardized contracts and a centralized exchange this means all participants in the market get pricing transparency and great liquidity. Each product has defined leverage and commissions because it is built into the contract—no surprises. It doesn’t matter what broker you choose to trade with, the price will be the same no matter what. The same cannot be said for Forex, where you could have the same product across different brokers, and a different spot price between each.
Read more on FX Futures hereForex markets have many “liquidity pools”, where Futures only have one. In Forex, your brokerage sets the “spread” between where you can buy or sell. In Futures, you trade directly with other traders, so there is more information available to make decisions, like volume and open interest, and your stops are not visible to the brokers.
Futures traders Buy at the Bid and Sell at the Offer, instead of in Forex, where you Buy at Offer and Sell at Bid. Why have to make 3–10 pips on the trade just to break even on your position? Why start out at a loss the second you put the trade on? With Futures, you can gain your edge!
Why rack up fees and commissions by putting on complex combinations, like Butterflies and Condors, to add leverage to one of your currencies in the pairs? If you want to be more heavily positioned in a currency, just add to that currency!
Once you have a consistent and profitable strategy, and want to position yourself to find more opportunities, consider managing more, but spreading out risk not only against other currencies, but against other products like: Interest Rate Products, Metals, Energies, Crypto, Grains, Meats.
Trading in a regulated market, like Futures, gives you the assurance that you are trading in a safe environment, safe from scandals and scrutiny.
Learn how our Futures Trading Combine® works here at Topstep!
How it works
