Learn Investing Secrets

Question # 7 - Multiple Trading Platforms to Choose From? Some Brokers offer their own platform. Be sure and make the simulated trade a full round turn transaction.

Question #9 - What else can I get and is there a Charge? Just visit any commodity brokers website and you will see the free gimmicks they use to entice us to open an account. If you are interested in Charting, have them send you some examples.

Question #10 - Are the Floor Traders employees of the Firm or are they Contracted? This question is important if you are trading markets that are executed in the live trading pits. Many commodity brokers do not have Traders in the Trading Pits and therefore contract the order execution out to Independent Floor Traders. You want the Floor Traders to be employees of the firm or at least ask what measures are in place for comparing order execution.

In Conclusion - Obtaining answers to these questions should get you well on your way to finding the best qualified commodity broker.

It has been said many times. Futures trading should be treated as a business. Part of this militancy involves qualifying the right ware tie to facilitate your trading activities. The correct selection will help to make your futures trading experience enjoyable and hopefully profitable while the incorrect determination can chaperon frustration and probably costly consequences. By profiling a number of special brokers you will set about to see the differences and be able to discard the less desirable of the group. If you take the time and do the homework you will be rewarded with a long-term satisfying homage relationship you and your broker.

The following list of questions is designed to provide a consistent process of qualifying each firm. Most of the information can be obtained from the respective seconds brokers website. Some will require email questions or personal contact.

Question #1 - Is the stockbroker an IB or FCM? This information is useful in determining whom you are dealing with. An IB (Introducing Broker) must use an FCM (Futures untangling Merchant) for trade prairie and order execution betwixt and between other things. If you are considering opening an hold with an IB then you should realize that your money will be held by the FCM not the registered representative you are working with. This is not bad, it means that you should also qualify the FCM.

Question #2 - How Many Years in Business? The main consideration here is the fact that just like any other new business, the odds of failure are very high in the first five years of operation. Stick with an established firm.

Question #3 - NFA and CFTC Data? The NFA and the CFTC are the regulatory bodies involved with the task of regulating and monitoring the concern of the members and registrants. All brokers must be registered. This group conducts Complaint investigation and regulatory manner upon members. You should take the time to visit the NFA website at www.nfa.futures.org/basicnet/Welcome.aspx. Enter the lead item brokers name and document any Regulatory proceeding and any Complaints. You can also use this site to find out when the firm technical for registration. This will give you a pretty good idea of how long they have been in business. If you are profiling a firm that has regulatory doings or a large number of complaints, you may want to consider moving on to further staple broker.

Question #4 - Minimum $$ to Open Account? This will vary greatly. In my experience the range is $0 to $10,000+. It depends on the type of trading you do and the markets you trade. The least height required is not often the best way to go and should only be a small factor in your decision. Whatever you do only use risk capital!

Question #5 - How will I receive handout Statements? This question is used to determine your own personal preference. The variations are bordering on endless. Just be assiduous that some futures brokers expect you to download your statements when you want them. They do not send any statements to you. The other side of the spectrum is the futures brokers that mail your trade confirmation statements and monthly statements. I prefer the electronic statements so that I can verify trades in a timely fashion. Most will provide real-time online enlightenment information.

Question #6 - 24 Hour Customer Service/Trading Desk? The current online trader gives far too little importance to this issue. Not having a reliable executive officer trading junction is like driving without a spare tire. No Big Deal until you have a flat Right? Maybe your computer crashes, maybe you have suddenly lost Internet access, maybe the trading platform is not functioning. You need to be familiar with the trading desk and it's operation. Be sensible to of possible costs to use the Trading Desk.

Question # 7 - Multiple Trading Platforms to want From? Some Brokers offer their own platform. This will usually be offered at no cost to you. Other Brokers only offer third party fee based platforms. And finally, some offer both their own and third party platforms. In relationship to the costs, if any, your major concern should be reliability. The more mobile trader you are the more important this is. Nothing worse than subsistence in the middle of a trade and the platform freezes or hangs. You do not know whether you have an order in or not! Take your time to probe for the answers to this question. There are at least 5 widely used third party platforms out there. The costs vary greatly, from cost-per-trade to monthly fee plus cost per trade. Also remember that if you need live streaming data you will possibly be pregnant the Exchange Data Fees. Do your homework on this one so there are no surprises.

Question #8 - net and Fees? Now it gets complicated. You will have to muster all your detective skills and patience to get through this one. The plain truth is you cannot blindly presume what you find on the websites and you probably cannot assume what the live body tells you. No they would not lie to you, they just are not telling you everything. With few exceptions, I can guarantee that you will not find full disclosure of trading costs on any futures brokers website. The space limitation in this thing prevents the detailed listing of all the cost related possibilities. I suggest you contact the perspective lead item money broker and run through a simulated trade challenge for a technological revolution of costs in common with the transaction. Be sure and make the simulated trade a full round turn transaction.

Question #9 - What else can I get and is there a Charge? Just visit any seconds brokers website and you will see the free gimmicks they use to entice us to open an account. Charting, research, newsletters, educational materials, webinars, live futures trading news services, pamphlets, booklets, leaflets, trial subscriptions etc. I think you get the idea. Focus on what is important to you. If you are interested in Charting, have them send you some examples.

Question #10 - Are the Floor Traders employees of the Firm or are they Contracted? This question is important if you are trading markets that are executed in the live trading pits. Many staple brokers do not have Traders in the Trading Pits and therefore contract the order execution out to Independent Floor Traders. The barter firm has less control over the Independent Trader, opening the door to unfavorable order fills. You want the Floor Traders to be employees of the firm or at least ask what measures are in place for order execution.

In Conclusion - Obtaining answers to these questions should get you well on your way to finding the best qualified article broker. Take your time and do the homework. You will make an informed decision.

More Articles: