Traders deposits capital with a futures brokerage so that he can pay possible losses if his future trades lose money. It is speculating on the future price. NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence. We strive to offer the services and tools necessary to assist you to succeed in your commodity trading plans; whether you are a beginning novice trader, or an experienced veteran. Your Commodity Broker Why use Cannon as your commodity broker?
Futures trading is complicated business, even for experienced investors, and so is shopping for a brokerage to use for futures and commodities trading. It’s not just about commissions and customer service (although both are important factors to consider).
Step by step guide for how to Trade Futures
Futures Trading Firm Fees. In addition to the fees listed above, each futures trading firm also charges fees that need to be paid to the futures trading exchanges and also to the National Futures Association NFA. The NFA is the self-regulatory organization for the U. Click the link below for a sample list of the futures trading fees charged by the respective futures exchanges.
Best Futures Trading Platforms. We applied rating scores based on various selection criteria, including: In the process, we narrowed the list down to the 7 best futures brokers presented in this review publication. For more information on our selection methodology, see the section below.
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top-rated lists?
Wide Range of Benefits. Futures Trading Firm Process. In addition to this high rating, it is also one of the top firms on our best futures brokers list. You are provided with a live order status from the order placement through confirmation.
The platform offers you the ability to directly access every major futures market in the world. Access all of your accounts, positions, and streaming quotes on one page stocks, options, futures, etc. Additionally, Generic Trade offers the lowest possible margins allowed by futures exchanges, and it offers aggressive day trading margins as well. Impressive Range of Features. Interactive Brokers provides two simple low-cost plans fixed and tiered plan pricing for trading futures and futures options.
Below, please find a list of the features that enabled us to rank Interactive Brokers as one of the top futures trading brokers. We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Best Futures and Commodities Brokers Best for. See our TradeStation review. See our Generic Trade review. See our Interactive Brokers review.
Phone support Monday-Friday 8 a. Eastern time; live chat and email support. See our TD Ameritrade review. See our Charles Schwab review. Set on a case-by-case basis Futures products: Best brokers for trading futures and commodities: Volume discounts for frequent traders; free access to select platforms and data.
We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines , and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.
Volume discounts for frequent traders; no platform fees. Best For Beginner investors Advanced traders Investors who want portfolio-building advice. Open an account securely through TD Ameritrade's website. Best For Beginner investors Advanced traders Investors seeking commission-free etfs.
Open an account securely through Charles Schwab's website. Best For Mobile traders Traders looking for research and data Investors looking for retirement planning guidance.
Open an account securely through eTrade's website. Get started securely through TradeStation's website. Pros Advanced trading platform Vast amount of historical data that allows back-testing of trading ideas Availability of many third-party add-ons. Get started securely through Interactive Brokers's website. Pros Interactive Brokers offers the lowest margin rates in the industry Low pay-per-share commissions on stock trades up to 1, shares and on options trades up to 20 contracts Vast order types options for professional traders.
Cons Account fee charges including annual, transfer, closing and inactivity fees Complex trading platform, which can be difficult for beginners. Get started securely through TD Ameritrade's website.
Pros Superior technology No account minimum balance Excellent customer support Premier data and news partnerships. Cons Slightly higher commissions Can be for more advanced users.
Get started securely through eTrade's website. Pros Extensive resources Full banking services Easy-to-use platforms. Get started securely through Charles Schwab's website. Advanced traders Options and futures traders Active stock traders.
Get started securely through TradeStation's website More Details. Day traders Penny stock traders Forex traders. Get started securely through Interactive Brokers's website More Details. Beginner investors Advanced traders Investors who want portfolio-building advice. Mobile traders Traders looking for research and data Investors looking for retirement planning guidance. Get started securely through eTrade's website More Details.
Beginner investors Advanced traders Investors seeking commission-free etfs.
A Comparison of vs. vs.
For some investors, the best broker for trading options is the one with the cheapest commissions. Others prioritize trading tools, platform design, research, customer service or all of the above. There are online directories where you can find hundreds of listings of commodity brokers. gestomedula.tk may be the best place when you are searching for a commodity broker. The site lists more than commodity brokers with addresses, phone numbers, websites, complaint histories, years in the business and some background information. Trading commodities online is a relatively simple process, but it is not an activity that you should pursue without doing lots of homework. The traditional method of calling a commodity broker to place orders and waiting for a call back to give you a filled order price is less efficient than online trading.