FUTURES TRADING - COMPARE ONLINE FUTURES BROKERS
Futures contracts allow you (the trader) to buy or sell a commodity at a specified date in the future, at a 'futures price' - that is, a market determined price. Futures contracts are traded globally via a Futures Exchange. Futures trading takes place via a central Futures Exchange. Companies are listed on an exchange, and traders can access electronic Futures trading platforms via these. One of the world's largest in the teamed-up New York Stock Exchange and Euronext, which provide inter-continental internet trading platforms. This means that investors can trade from anywhere in the world using an internet connection - even from home. Before you start trading make sure you know the facts.
When you open a futures account, you will need to pay an initial margin. This will be a percentage of the value of the contract that is made with the broker. The amount of the margin is also set by the broker or exchange, and will vary according to fluctuations in the market and price movements. Usually margin deposits are around 2 to 10% of the value of the contract. Each Futures Exchange is regulated by the government regulatory body of their country. In the UK, futures exchanges are regulated by the FSA (Financial Services Authority). In order to be able to trade through a futures exchange, a company must be regulated. You can check this by going to the FSA website.
Please find below a list of Futures Brokers for you to compare. It is really important that you take the time to research the market and compare what is available. In the table below you can weigh up the pros and cons of different Futures Brokers looking at aspects such as commission fees and the required trade and account minimum. Once you have made your decision simply click on ‘more’ to go to the next stage.
The initial margin is a deposit used as collateral to open a position
Commission paid for futures trading
DIRECT MARKET ACCESS
Direct Market Access
Individuals to deal with your account
For those wishing to connect market data and/or order routing functionality into their own developed software
Is options trading available
daytrade margin minimum
Depending on trading volume and market
|Apex Futures is a deep discount online futures and forex brokerage firm offering daytrade margins as low as $500, free and fast trading platforms, low commissions, and free access to a live broker via phone or online chat. Signup for our free 30 day simulated trading demo to see for your self. Futures trading is an expert's game and it is important that you know what you are doing. Trader training services are available as well as simulated trading platforms. Please read the terms and conditions in detail before you start to invest your money. DETAIL INFORMATION >>||Markets Covered|
8 Base Currencies
Standard day trading margins
|From $0.10 side*+fees|
Ask a broker for details
|Global Futures is one of the largest independent introducing futures brokers firms offering futures trading, commodities and options services on major exchanges around the world. We offer Direct Floor Access, Full Service, System trading, Managed account, Hedge Funds and Institutional accounts. Supported by global technology, our platforms are designed to provide powerful, reliable and value-added brokerage solutions. We have serviced 19000+ accounts since 1998. Please make sure that you read the terms and conditions. DETAIL INFORMATION >>||Markets Covered|
12 Base Currencies
Compare Futures Trading Brokers
Information regarding futures trading
Futures Trading revolves around speculating on the future price of a commodity. Some of the main Commodities traded are arable produce such as wheat and soya, metals like copper and gold, livestock (beef), oil and timber. Currency is also considered a commodity.
Commodity trading involves the trader or investor speculating on the future value of a commodity. If the investor believes that the value of a commodity will grow in the future, they purchase a futures contract. If they believe that the value of a commodity will decrease in the future they see the futures contract.
Is it necessary to own the commodity traded?
The majority of traders will never see the commodity that they are trading. This is due to the fact that the agreed exchange is set for a date in the future; the majority of traders offset the commitment prior to that date. Sometimes they even sell first and purchase at a later date.
In this way you don’t need to take on a delivery of a commodity (such as a large amount of coffee beans) because most traders offset their position prior to the due date on the contract.
What is a Futures Contract?
Unlike with stocks or bonds investing, it is not necessary with futures trading to own or purchase anything. You are betting on the commodity and what its value will be in the future. A futures contract means that the investor buys or sells a commodity for a predetermined price and at a prearranged time period. He or she is then obliged to buy or sell that commodity at a future date.
Who are the different types of traders in futures trading?
Hedgers: These are the people who produce commodities such as farmers. They will want to protect themselves from future price changes so they will take out a futures contract. The farmer wants to make sure that even if the value of grain falls by harvest time, they can still make a profit. Futures trading permits you to sell before you purchase. This is done by vending a futures contract before purchasing it. The farmer wants to sell at a high price and purchase at a low price before the expiration date, so that he can make a profit. The farmer can make this profit even if the cash price of grain drops, because he is making back the loss by profiting on the short-selling of the futures contract.
The Speculator: This is the usual Futures trader. He or she looks to profit by betting on the future price of a commodity. The speculator invests in futures in a comparable way to investing in the stock market.
Do you need a lot of capital to start trading?
On opening a futures account, you will need to pay an initial margin. This is likely to be a percentage of the value of the contract that is agreed with the broker. The price of the margin is also set by the broker or exchange, and will change according to fluctuations in the market. Usually margin deposits are around 2% to 10% of the value of the contract.
Is Futures Trading Regulated?
The Futures Exchange is regulated by the government regulatory body of their country. In the UK, futures exchanges are regulated by the FSA (Financial Services Authority). In order to be able to trade through a futures exchange, a company must be regulated. You can check this by going to the FSA website.
What are the risks of futures trading?
Futures trading can be very risky and if you are using your own capital there is the possibility of losing it all. By accepting a Futures contract, there is the potential to lose all of your invested funds, your initial margin and additional funds.
If you want to engage in futures trading you should only use capital that you can afford to lose. The risk of losing capital is extremely high in this type of trading, and most traders will lose capital at some point.
04 December 2009
Xenia Rainey (Which Way To Pay)
It is no secret that the value of gold has increased greatly this year. New records for the price of an ounce are constantly being broken and many believe that the precious metal’s journey is going to remain upwards for some time yet.
29 July 2009
Xenia Rainey (Which Way To Pay)
Oil demand is still weak despite the significant increase in the price of a barrel since December. Back then, the price dipped to $30 and is now just below $70, where it continues to hover.
08 July 2009
Xenia Rainey (Which Way To Pay)
There are some things that you might want to bear in mind before entering the exciting, often rewarding world of Futures trading. While successful trading can lead to really healthy returns, don’t forget that any trader can lose a substantial amount of capital. While there are countless books, internet sites and stories on ‘how not to lose money in futures trading’, the real matter here is the individual story.
23 June 2009
Mark Maffia (Which Way To Pay)
Futures trading is an historical investment type and has grown from Ancient Greece and Japan to the cotton and corn exchanges of the Deep South in the USA to become a global market, easily accessible via the internet.