Futures Brokers

Abc Arbitrage Amalgamated Metal Corporation Plc Daiichi Commodities Company Limited Koyo Futures Co., Ltd

Man Group Plc Merrill Lynch & Co. Inc. Numis Corporation Plc STAR SECURITIES COMPANY LIMITED

TD Waterhouse Group Inc. Yutaka Shoji Co., Ltd.

Guide to Futures Brokers

Finding a good future broker
By Felicia R. Blue

Discount futures brokers may help you save money, but you need to take other factors into consideration when looking for futures brokers. Will discount futures brokers offer you advice on your investment strategies? Or are you on your own? You’ve decided to make trading your business. However, your trades have involved stocks, bonds or mutual funds. Now you’re ready to take investment to a new level. You want to invest in futures. You have been studying futures, but it’s still unfamiliar territory.

You're going to be trading. So obviously, you'll be looking for online futures brokers. Or if you live in Chicago, you may want to stay local, and find Chicago futures brokers. When considering futures brokers, you should know the following:

1. Future brokers should offer flexibility on trading.
2. Brokers are available who work for deep discounted commissions.
3. Futures brokers should execute your trades quickly.

Action Steps

The best contacts and resources to help you get it done

Find out what trading platforms the futures brokers use When it comes to deciding on trading platforms, you want flexibility. Does the commodity broker offer wireless or online trading? If it's online trading, for example, does the futures brokerage firm allow you to execute a trade from any computer? Does it offer real-time prices? Does the commodity broker offer financial and technical analysis? Perhaps you don't want to execute a trade, but instead you want to perform a simulation trade. A good commodity broker should offer this feature. After all, you'll be risking a significant amount of money. One factor you'll need to consider is that prices will vary depending on the features you want.

I recommend:  Look at Lind-Waldock’s website. Lind-Waldock is a Chicago futures brokers firm that offers 3 pricing levels: Lite, Standard, and Professional. Choose one that will fit your budget and trading needs. Like Lind-Wald, ExpressFutures.com, a discount futures brokerage firm, offers 3 trading platforms that you can use.

Ask futures brokers how quickly they will execute your trades Timing is everything. Futures prices can change in just a second. If you use a trading system that is based on buy-and-sell signals, you need a reliable futures brokerage firm that will execute your trade immediately. You will need to have access to real-time futures prices. That way, you can time your buy or sell decisions. You will want to ask the futures brokers how they route their trades. Another question you'll want to ask is their percentage rate on executed trades.

I recommend:  Look at both ClearTrade Commodities and Interactive Brokers LLC. ClearTrade’s MTRADE PRO gives you real-time trading access. You can also trade on multiple exchanges. Interactive Brokers uses IB SmartRouting that searches for the best price and dynamically routes your order to find the best execution.

Ask commodity brokers about commission structure You need to check a future broker's commission structure. Some commodity brokers can charge you higher rates because you've decided to hold trades overnight. Commissions vary at different futures brokerage firms. Some charge flat rates. Depending on how frequently you trade and your account balance, futures brokers will charge you less.

I recommend:  NobleTrading Inc’s website has a breakdown of the commission for futures. Heritage West Futures Inc. gives a good explanation of how its commission structures work.

Tips & Tactics

Helpful advice for making the most of this Guide

• Make a list of services of what futures brokers will offer. Don't just base your decision on discount commissions.