Futures: Closer to Market Democracy Than Equities¶
Equities may be marketed as the path for the everyday investor-but under the surface, they've become a maze of fragmented exchanges, slow public data feeds (SIP), and opaque order routing games stacked against retail.
Futures, on the other hand, are often misunderstood as "too complex" or "just for institutions." In reality, they've evolved into one of the fairest, most efficient ways for anyone - retail, HFT, or institutional-to trade.
Here's why futures are closer to market democracy than equities:¶
1. Equal Access¶
Everyone sees the same data in real time-no SIP delays, no PFOF. No second-tier data feeds or routing tricks. A truly level playing field.
2. Global Diversification¶
You can trade equity indices, treasuries, oil, gold, wheat, crypto, FX, and more in One Account. Micro contracts make even these accessible to small accounts.
3. Simpler Market Structure.¶
A handful of exchanges dominate global futures (CME, ICE, Eurex). Compare that to 16+ exchanges just in U.S. equities. Why so fragmented?
4. Fewer Barriers¶
No pattern day trading rules. No SEC best execution complexity. Lower regulatory overhead.
5. More Efficient Tax Treatment¶
IRS 1256: 60% long-term capital gains tax-even on short-term trades.
6. Smarter Margin Rules.¶
Futures use real risk-based margining, not rigid "25% of account" rules. You can take meaningful positions with less capital.
Conclusion¶
If you're serious about trading or investing - and want fairness, leverage, and global access without hidden fees or stale data-futures deserve your attention.
They've quietly become the better option for the little guy.