In 2024, the financial landscape is more dynamic than ever, and with that comes both opportunity and uncertainty. Many investors are wondering:
What’s the best way to make money with futures trading in this environment?
Stocks are volatile, crypto is unpredictable, and real estate feels out of reach for many. That’s where futures trading comes in.
As someone who has been in the futures market for years—especially focusing on day trading and scalp trading—I can confidently say that futures trading is the best way to make money in 2024 & 2025 going into the future.
This guide will break down why futures trading stands out, especially for new and aspiring traders in their 20s, 30s, and 40s. Let’s dive in.
Futures Trading Offers Flexibility Like No Other
24-Hour Market Access
One of the biggest advantages of the best way to make money with futures trading is that it operates almost 24 hours a day, five days a week. This is perfect for those of you juggling jobs, family, or other commitments. Whether you want to trade early in the morning, late at night, or during your lunch break, futures markets are ready.
When I first started out, I was working a full-time job and only had early mornings and evenings to trade. Stock markets closed at 4 PM, but with futures, I could trade late into the night. This flexibility is priceless for new traders, especially if you’re looking to build a side hustle into something bigger.
Global Market Access
Futures markets cover everything—commodities like oil and gold, stock indices like the S&P 500, and even cryptocurrencies like Bitcoin. This global market access makes futures trading truly the best way to make money with futures trading since you can always find opportunities in different sectors. Whether it’s a sudden surge in the price of oil or a dip in the NASDAQ, futures give you the flexibility to trade a variety of markets and make profits in any environment.
Leverage: Amplify Your Small Investments
What is Leverage?
Leverage allows you to control a large futures contract with a relatively small amount of money. This is one of the most exciting aspects of the best way to make money with futures trading, especially for those of us who don’t have tons of capital to start with. Essentially, leverage magnifies your potential profits—and yes, your potential losses—so it’s something to handle carefully.
When I first dipped my toes into futures, I started with a small account— with a prop firm Apex Trader Funding costs around $35/month to get into a $25k challenge. Thanks to leveraging prop firms, I was able to trade contracts worth much more.
Within 2 months, I turned that small investment from a challenge account into a PA account and withdrew $1,000.
But—and this is important—you have to be cautious with leverage. I’ve seen traders blow up their accounts by being too aggressive, so always use stops and manage your risk carefully.
High Reward Potential
One of the reasons futures trading is the best way to make money is because even small price movements can lead to big profits, thanks to leverage. For example, in day and scalp trading, you might only be looking for small price changes like 10-20 ticks, but with leverage, those small moves can translate into significant gains depending on how many contracts you trade with.
Liquidity: Instant Execution and Tight Spreads
Why Liquidity Matters
As a day trader and scalper, liquidity is everything. High liquidity means you can get in and out of trades quickly, which is essential when you’re making decisions on the fly. Futures markets, particularly those for popular contracts like the S&P 500 or crude oil, are extremely liquid. This means you don’t have to worry about being stuck in a position or getting a bad price when entering or exiting a trade.
Tight Spreads & Low Slippage
With high liquidity comes tight spreads—the difference between the bid and ask price. For scalp traders, where every tick counts, this is critical. The tighter the spread, the lower the cost of entering and exiting trades. I remember my first scalp trade on an e-mini S&P 500 contract. The spread was so tight that even though I only caught a few ticks of movement, I walked away with a solid profit. Every cent matters when you’re scalping!
Low Capital Requirements for Entry
Low Barrier to Entry
Unlike other markets where you need large sums of money to get started, the best way to make money with futures trading offers a low barrier to entry. You don’t need to have $25,000 lying around like you do for day trading stocks to avoid the PDT (pattern day trader) rule.
One of the best developments in the last few years has been the introduction of micro-futures contracts. These smaller contracts allow new traders to get involved with minimal capital. You can trade the same markets as the big players, but with much less risk.
When I first started trading micro-futures, I was amazed at how accessible they made the market. If you’ve got a couple hundred bucks, you can start trading the S&P 500 or gold without risking everything. And now with prop firms such as Apex Trader Funding, you can get started on your way to trading a funded account with as little as $20 (depending on the current promotion running, my last account was $29.40/month and I passed in a month).
Tax Advantages Over Stocks
Tax Efficiency
Now, here’s something that often gets overlooked: futures trading is the best way to make money if you want to maximize tax efficiency. In the U.S., futures traders benefit from the 60/40 capital gains rule. This means 60% of your gains are taxed at the long-term capital gains rate, and only 40% at the short-term rate. Compare this to stock day traders, who get hit with the higher short-term capital gains rate on all profits. Please do your own research on taxes as I am not a professional and consult with a professional each year.
Why This Matters in 2024
In 2024, with inflation and potential changes to tax laws on the horizon, keeping more of your profits is crucial. The tax benefits of futures trading can really add up over time, especially if you’re an active trader like me.
Built for Short-Term Traders
Futures Thrive on Volatility
For day traders and scalpers, volatility is our bread and butter. Futures markets, particularly commodities like oil or indices like the NASDAQ, tend to have more volatility than other markets. And volatility means opportunity—both for big moves and for lots of small ones.
One of the reasons I gravitated toward futures is because I love the fast-paced nature of the markets. Whether I’m scalping a few ticks here and there or holding a position for a couple of hours, the movement in futures markets keeps me engaged and, more importantly, profitable.
Risk Management & Hedging Opportunities
Built-in Risk Management
Futures trading offers precise risk management tools, allowing you to set tight stop-losses and limit your exposure on any trade. This is crucial for anyone who’s day trading or scalping, where the focus is on quick trades and limiting losses. If you do not use stop-losses… you are wrong.
I can’t tell you how many times a well-placed stop saved me from taking a big hit. By setting clear risk parameters, you can trade futures without blowing up your account.
Conclusion: The Time to Start is Now
In 2024, the best way to make money with futures trading offers unparalleled flexibility, leverage, liquidity, and risk management—all crucial ingredients for making money. Whether you’re looking to trade part-time or go all-in, futures trading gives you the tools to succeed, even with a small account.
If you’re serious about building wealth and taking control of your financial future, there’s no better time to start than now. Take a small step by opening a demo account, or start trading micro-futures with Apex Trader Funding. You’ll be amazed at how quickly you can grow your skills—and your account.
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