I've been on both sides of the scale - Full time for over a decade and contracting for about a year.
I have recently gone back to full time and personally i prefer it but this is due to stability and the nature of my industry. (i live in London and there are only a handful of good companies here).
The money i was making as a contractor was pretty damn good. I was earning more than my direct boss.
The trouble was it made me paranoid that I could face being terminated at any point.
I set up my own limited company, got an accountant and all the online accountancy software that allows you track everything and generate invoices.
The thing is, personally it all just felt like a hassle to me.
Keeping receipts and uploading them to expense it, expensing everything, constantly thinking what can I expense.
Generating invoices, checking they have paid me, chasing up why payment has been late or even early etc
Setting up the pension and just generally chasing up with the accountant whether everything i am doing is the most efficient way to do things.
All of it just naturally adds up as an administrative annoyance and personally I am quite lazy with that stuff and just want to get on with the job I love.
It also forced me to be organised and set up a personal google drive to record everything since it made me paranoid about getting caught out of whatever reason.
It also felt like every other month there was some form of tax to pay, whether it be corporation or whatever. The money wasn't a problem just the annoyance of it all.
Don't get me wrong, the money was great! But personally for me all the admin stuff around it was not worth it. I had other friends in my industry who were the complete opposite and loved it. Loved the money and were not bothered about all the other affairs you handle around it.
I always saw the extra money as danger money. Paid myself my old wages and banked everything else incase work dried up or another big ass bill came in.
On the other side FTE vs Contracting there is the work environment.
Now this really only applies to my experiences in the games industry but in general most people stay in a company long term.
Depending on the company they can drastically treat full timers and contractors differently. This often created an "us and them" mentality.
Games companies tend to have a pretty tight knit dev culture. It's just that type of environment due to the nature of the work.
Due to regulations some companies policies made things a little divisive.
Contractors would get separate emails regarding matters or not invited to company wide meetings (bare in mind the workforce could be 40% contractors)
In some places friends told me they were not even allowed to be invited to the company parties or get any free shit that the fulltimers got.
Imagine when the xbox one released half the company went into a room and walked out with a free console whilst the others looked on enviously.
Kinda made for a elephant in the room type of situation at times or resentment and didn't really fit in with the nature of the type of work we were doing.
What made it worse is that not all the contractors were making good money so it just sucked for them in general unless you were a senior.