Introduction
Investing in futures is an excellent way of diversifying your investment portfolio. Futures contracts are agreements to buy or sell an asset at a predetermined price and date in the future. Futures trading can be a profitable venture, but it is risky and requires understanding of market trends and financial analysis.
The futures market is highly regulated, and you need to choose a trustworthy broker to place trades on your behalf. In this article, we’ll explore some of the best futures brokers in the market.
What to Look for in a Futures Broker
Before choosing a futures broker, you should consider several factors. First, make sure the broker is regulated by a relevant regulatory authority. The National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) regulate brokers in the United States. The Securities and Futures Commission (SFC) regulate brokers in Hong Kong, while the Financial Conduct Authority (FCA) regulates brokers in the United Kingdom.
Next, consider the trading platform the broker uses. A good trading platform should be user-friendly, have advanced charting tools, access to news feeds, and provide real-time market data. You should also check the fees charged by the broker, including commissions, margin fees, and platform fees.
Here are five trustworthy futures brokers to consider when investing in futures.
1. TD Ameritrade
TD Ameritrade is one of the largest futures brokers in the United States, with over 11 million client accounts. It is regulated by the NFA and the CFTC, and it offers access to more than 70 futures products. TD Ameritrade has an excellent trading platform, thinkorswim, that provides real-time market data, customizable charting tools, and access to news feeds.
TD Ameritrade has competitive fees, with commissions starting at $1.50 per contract. The broker also charges low margin rates, with margin requirements as low as $500. TD Ameritrade has excellent customer support, with phone, email, and chat support available 24/7.
2. Interactive Brokers
Interactive Brokers is an excellent futures broker for advanced traders. It offers access to more than 90 futures products and is regulated by the NFA and the CFTC. Interactive Brokers has an advanced trading platform, Trader Workstation (TWS), that provides real-time market data, advanced charting tools, and customizable watchlists.
Interactive Brokers has competitive fees, with commissions as low as $0.25 per contract. The broker also offers low margin rates, with margin requirements as low as $500. Interactive Brokers has excellent customer support, with phone, email, and chat support available 24/7.
3. E*TRADE
E*TRADE is another popular futures broker that is regulated by the NFA and the CFTC. The broker offers access to more than 80 futures products, and it has a user-friendly trading platform, Power E*TRADE, that provides real-time market data, customizable charting tools, and access to news feeds.
E*TRADE charges competitive fees, with commissions starting at $1.50 per contract. The broker also offers low margin rates, with margin requirements as low as $500. E*TRADE has excellent customer support, with phone, email, and chat support available 24/7.
4. NinjaTrader
NinjaTrader is a futures broker that offers a free trading platform and low commissions. The broker is regulated by the NFA and the CFTC and provides access to more than 100 futures products. NinjaTrader’s trading platform provides real-time market data, advanced charting tools, and access to news feeds.
NinjaTrader charges low commissions, with rates as low as $0.53 per contract. The broker also offers low margin rates, with margin requirements as low as $400. NinjaTrader has excellent customer support, with phone and email support available during market hours.
5. AMP Futures
AMP Futures is a futures broker that offers low commissions and low margin rates. The broker is regulated by the NFA and the CFTC and provides access to more than 60 futures products. AMP Futures’ trading platform provides real-time market data, advanced charting tools, and access to news feeds.
AMP Futures charges low commissions, with rates as low as $0.50 per contract. The broker also offers low margin rates, with margin requirements as low as $300. AMP Futures has excellent customer support, with phone and email support available 24/7.
Conclusion
Investing in futures is an excellent way of diversifying your investment portfolio. However, it is essential to choose a trustworthy broker to place trades on your behalf. When choosing a futures broker, consider factors such as regulatory compliance, trading platform, fees, and customer support.
TD Ameritrade, Interactive Brokers, E*TRADE, NinjaTrader, and AMP Futures are all trustworthy futures brokers that provide access to a wide range of futures products, low fees, and good customer support. Consider these brokers when looking for a futures broker to invest in.
