Futures For You by Carley Garner
What is the best way to build an intermediate- to long-term position in the currencies?
First, traders must choose a venue — whether foreign exchange, futures, or equity products such as exchange traded funds (Etfs). If you have been following this column, you likely know we have supported arguments for and against each method but lean toward the idea of currency futures.
Here is a quick recap, but keep in mind these are highlights and do not encompass the entire argument:
Currency futures are highly regulated by the Nfa. Forex has recently fallen under the wings of the Cftc and Nfa in the US, but there is still a long way to go to get regulations in these markets up to par with those of futures.
Some forex brokers (known as dealing desks) go beyond acting as a broker, which brings buyers and sellers together. Dealing desks partake in the transaction by taking the other side of their clients’ trade, posing an obvious conflict of interest.