Top Futures Brokers – Compare & Trade

When it comes to trading futures, having the right broker can make all the difference.

A futures broker is a company that gives you access to the markets, allowing you to trade on your own.

With so many options out there, it can be overwhelming to choose the right one.

In this article, we’ll take a look at what to look for in a futures broker, as well as some of the top options available today.

What to Look for in a Futures Broker

When choosing a futures broker, there are a few key things to keep in mind.

First, you’ll want to look for a broker that offers a wide range of markets and products.

This will give you more flexibility and opportunity for diversification in your trading.

Second, you’ll want to look for a broker with low fees and commissions.

This will help you keep more of your profits.

Third, you’ll want to look for a broker with a good reputation and strong financial backing.

This will give you peace of mind knowing that your broker is reliable and trustworthy.

Comparison of top Futures Brokers

When choosing a futures broker, it’s important to consider your specific needs and preferences.

Here is a side-by-side comparison of some of the top futures brokers in the market:

Interactive Brokers:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Trading Platform: Advanced

Thinkorswim:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Customer Service: Excellent

E-Trade:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Platform: User-friendly

CME Group:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Trading Platform: Advanced

Charles Schwab:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Customer Service: Excellent

Saxo Bank:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Advanced trading platform and tools

NinjaTrader:

• Markets and Products: Wide range
• Fees and Commissions: Low
• Very popular trading platform

IG (via CFDs):

• Markets and Products: Wide range
• Fees and Commissions: Low
• Platform: User-friendly, with a wide range of educational resources

ICMARKETS (via CFDs):

• Markets and Products: Wide range
• Fees and Commissions: Low
• Advanced trading platform and tools

Keep in mind that this is a non-exhaustive list of the top futures brokers and the best one for you may vary depending on your specific needs and preferences.

It’s always a good idea to research and compare different brokers before making a decision.

How to open an account with a futures broker

Opening an account with a futures broker is relatively simple.

Here are the basic steps:

1. Research different brokers and choose the one that best fits your needs.
2. Visit the broker’s website and complete the online application.
3. Submit any required documentation, such as ID and proof of address.
4. Fund your account with cash or securities.
5. Start trading!

How to trade futures with a broker

Once you have opened an account with a futures broker, you can start trading.

Here are the basic steps:

1. Research the markets and products you are interested in trading.
2. Place an order with your broker.
3. Monitor your positions and adjust your strategy as needed.
4. Close your positions and take profits or cut losses.

Risks involved in trading futures

Futures trading involves a high degree of risk.

It is important to be aware of the potential risks before you start trading.

Some of the risks include market risk, liquidity risk, and leverage risk.

Market risk refers to the risk that the value of the underlying asset will decline, resulting in a loss for the trader.

Liquidity risk refers to the risk that the trader may not be able to close a position due to a lack of buyers or sellers in the market.

Leverage risk refers to the risk that the trader may not be able to meet the margin requirements and may have to liquidate the position at a loss.

How to manage risk in futures trading

Managing risk is an important aspect of futures trading.

Here are a few ways to manage risk:

1. Diversify your portfolio: Spread your investments across different markets and products.
2. Use stop-loss orders: Set a limit on the maximum loss you are willing to take on a trade.
3. Use risk management tools: Many brokers offer tools such as options and futures contracts to help manage risk.
4. Keep an eye on the economic calendar: Be aware of any events that might impact the markets.

Different types of futures contracts

There are many different types of futures contracts available for trading.

Some of the most common include:

1. Agricultural futures: These include contracts for commodities such as corn, wheat, and soybeans.
2. Energy futures: These include contracts for commodities such as oil and natural gas.
3. Financial futures: These include contracts for financial instruments such as currencies and interest rates.
4. Index futures: These include contracts for stock market indexes such as the S&P 500.

How to develop a trading plan for futures

Developing a trading plan is important for success in futures trading.

A trading plan should include:

1. A clear investment thesis: Understand your reasons for trading and your goals for the trade.
2. Risk management strategies: Have a plan in place for managing risk.
3. Entry and exit criteria: Know at what point you will enter and exit a trade.
4. Position sizing: Determine how much to invest in each trade.
5. Performance tracking: Track your progress and adjust your plan as needed.

Conclusion

Choosing the right futures broker is crucial for success in trading futures.

Look for a broker that offers a wide range of markets and products, low fees, and a good reputation.

Also, it’s important to manage risk, develop a trading plan, and always do your research before making any investment.

With the right approach, you can increase your chances of success in the futures markets.