Why Futures Trading Is One of the Best Markets for Day Traders

Everyone keeps asking me, “What’s the best market to trade?”



I’ve been trading for over four years, and I’ve traded pretty much everything—options, stocks, forex, futures, and even a little bit of crypto. 

After spending time in each market, I’d say futures are the best market to trade, especially if you’re a newer trader.

First, there are some major advantages when it comes to trading flexibility. 

Futures don’t have the same PDT restrictions that apply to many stock and options accounts, so you can make as many day trades as you want. And unlike stocks, you don’t have to deal with unsettled funds.

That’s something a lot of people overlook.

Another major advantage is the cost. Futures typically have relatively low fees and commissions, and you can start with a smaller account by trading micro contracts. 

You can choose your level of exposure depending on the contract you trade, from relatively small dollar movements with micros to much larger moves with minis.

You also have to consider liquidity. Major futures markets are extremely liquid, which means you can generally get in and out of trades quickly with relatively tight spreads and low slippage.

Compare that to options, where you have a lot more variables to worry about—theta, gamma, delta, vega, and everything else that comes with options pricing. 

With futures, it’s much more straightforward: you’re primarily trading the direction of the market.

That being said, there isn't one market that's objectively best for everyone. You can make money trading stocks, options, forex, futures, or crypto. The best market is ultimately the one that matches your trading style, risk tolerance, and strategy.

Personally, I recommend learning futures first. Once you understand how the market works and develop a consistent strategy, you can always branch out into stocks, options, or anything else you’re interested in. 

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