The post Best Futures Brokers by Luke Jacobi appeared first on Benzinga. Visit Benzinga to get more great content like this.
Benzinga readers often choose Interactive Brokers or NinjaTrader as the best futures brokers.
Futures trading history is as simple as understanding the concept of farmers planting crops every spring, and then, every fall, farmers harvesting grain and locking in prices early in the season, rather than later. In fact, farmers were originally the ones who taught Wall Street how to trade futures. (No lie!) That’s why you need access to the best futures brokerage.
In choosing a broker, serious futures traders must balance low commissions, intuitive platforms, excellent customer service and up-to-date research options. Traders also need charting and screening tools to guide decision-making.
In a world where futures trading is already a high-risk endeavor, it’s even more of a risk if a platform is clunky, a trading app can’t keep up, or customer support has no idea what a Fibonacci indicator is. Everything must tick along as smoothly as a Rolex Cellini tracks the seconds in a day.
Start with our guide to find an online futures brokers platform to make your trading experience seamless.
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9 Best Futures Brokers
Here are Benzinga’s top picks for the best futures trading platform.
- Best for Desktop Traders: NinjaTrader
- Best for Global Traders: Interactive Brokers
- Best for High Volume Traders: Discount Trading
- Best for Non US Mobile Users: Plus500
- Best for Low Deposit Requirement: Tickmill
- Best for Micro Futures: Optimus Futures
- Best for Early Investors: Generic Trade
- Best for Advanced Traders: Tradestation
- Best for Day Traders: TD Ameritrade
1. Best for Desktop Traders: NinjaTrader
NinjaTrader is a powerful derivatives trading platform specializing in futures, forex and options. The platform has a number of unique trading tools. A free version does exist without the extra goodies provided by Trader + and OrderFlow + but users can still break down charts, backtest strategies and trade without upfront payment. NinjaTrader hosts its own brokerage services but users have their choice of several different brokerage options. Accounts have minimums depending on the securities traded and commissions vary depending on the version of the platform. Advanced derivatives traders will have endless fun with the platform’s mighty array of tools and analyzers.
The free version, which is included with all brokerage accounts is a great starting platform for new traders without the financial commitment. As you grow in your trading and are ready for more tools and functionality, you can add more complexity.
- Futures Traders
- Traders looking for 24/7 action
- Advanced Traders
- Powerful analysis tools
- Free download and simulated trading
- Open source trading apps to enhance experience
- Can only trade derivatives like futures and options
NinjaTrader has an amazing trading platform for those just beginning their trading careers as well as for advanced traders. Its extensive collection of technical analysis tools is perfect for beginners utilizing a demo account, and it even offers a 2-week free trial when you register.
If you want to use NinjaTraders software, you can get it for free when you fund a brokerage account or you can lease the software. You will get access to charts, simulated trading, and market analysis, the essentials for futures trading, even if you get the software for free.
Pros
- 2-week free trial
- Free software options
- Simulated trading options
Cons
- Software leases could prove to be pricey
2. Best for Global Traders: Interactive Brokers
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
- Futures traders
- Trading futures 24/7
- Sophisticated investors
- Access to international markets
- Buy & sell futures at lowest commission rates
- Hedge positions or act on price movements in 150 financial markets worldwide
- Trade futures side by side on a single screen w/ substitute asset classes in stocks, bonds, options
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
Interactive Brokers offers low commissions for futures traders from USD 0.25 to 0.85 per contract, with the ability to trade commodity futures and futures options globally on 30+ market centers. Furthermore, they offer industry low margin rates from 4.58% or less, powerful futures trading tools including their ComboTrader, SpreadTrader, and Index Arbitrage Meter, and educational material for novice futures traders.
Pros
- Several trading options
- Unique market information
- Low fee options
Cons
- May be too complex for novice traders
3. Best for High Volume Traders: Discount Trading
The aptly-named Discount Trading firm offers ultra-low commission rates and day trading margins to clients worldwide. You’ll also find low futures day- trading margins. The Indiana-based broker offers over 20 different futures trading platforms and 5 trade routing solutions. You’ll also find a completely free platform with live streaming quotes.
Isn’t the price the number one tick in the box for most investors? You can absolutely check that box with Discount Trading.
- Futures or options traders looking for a discount futures or options broker
- Traders who can’t find lower margins anywhere else
- Traders tantalized by low commission rates
- Ultra-low commission rates and day-trading margins ($0.49 or less)
- No monthly inactivity fee
- Five different routing solutions and access to over 20 of the most popular platforms in the industry
- Tough to find the best platform for your needs, due to the sheer number of options available
Futures traders looking for volume discounts have plenty of options, but few make trading as simple and affordable as Discount Trading. For starters, Discount Trading doesn’t just offer affordable commissions – they have some of the cheapest trading fees of any futures broker currently on the market!
If you make only a single futures trade each month, your commission will be a mere 49 cents per side. However, if you’re an active trader flipping more than 50,000 contracts per month, your commission will be just 19 cents.
Pros
- Low cost trading
- Diminishing fee options
- Can volume trade with ease
Cons
- Smaller range of assets available
4. Best for Non US Mobile Users: Plus500
86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is a European derivatives broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
Plus500 is a derivatives brokers that offers futures trading services, including CFDs. The platform offers access to several different trading instruments and many markets that you can use to build your portfolio. Highlights include:
- Quick onboarding
- Simplified mobile trading
- Easy-to-use platform
- CFDs for indices, ETFs, shares, forex, commodities, options and crypto
- Free deposits and withdrawals
- $100 minimum
- 0.7% currency conversion fee per transaction, when the currency in your account is different from those traded
Because Plus500 doesn’t charge a commission and only profits on spreads, however, this is not a platform for beginners. You can jump into Plus500, make the most of your expertise, build your portfolio and quickly turn a profit.
Pros
- Only charges spreads
- Low minimums
- Free deposits and withdrawals
Cons
- Not made for beginners
5. Best for Low Deposit Requirement: Tickmill
Tickmill is an award-winning, multi-regulated investment firm offering trading in a plethora of asset classes including, CFDs in forex, precious metals, indices, stocks, commodities, cryptocurrencies and bonds.
Apart from offering various platforms, Tickmill caters to traders of all levels by providing competitive pricing, leverage up to 1:500 depending on the entity and client classification, dedicated support, exclusive market analysis and a wide array of trading tools and education. This low-spread broker offers fast execution, several payment methods and no restrictions on trading strategies such as hedging or scalping.
Futures and Options are offered with Direct Market Access across multiple globally regulated Futures exchanges including CME, CBOT, NYMEX, COMEX, EUREX, ICE Futures Europe and more. Real Futures include Stocks, Indices, Forex, Metals, Cryptos and Energies like the Micro E-Mini S&P 500, Micro E-Mini Nasdaq 100 and Micro Bitcoin Futures.
Future and Options are offered with probably the lowest fees and transparent commission structures in the industry, ultra-low latency, and seamless trading solutions for high volume trading with reliable, flawless order routing underpinned by advanced technologies.
Tickmill has become a trusted market-leading broker because of its commitment to seeking regulations in several jurisdictions. Traders have access to forex, stocks, commodities, cryptocurrency and bond markets as well as Futures and Options.
Free educational content and advanced tools are available for novice and experienced traders to help them enhance their trading strategies and achieve their trading goals.
The 20+ awards received are a testament to Tickmill’s commitment to providing optimal trading conditions for retail and institutional clients. Besides offering low spreads and fast execution, Tickmill ensures no trading restrictions, access to CFDs and occasionally runs campaigns (under Tickmill Ltd) to reward traders for their loyalty and activities.
- Forex, stocks, commodities, precious metals, bonds and crypto with competitive conditions
- Futures & Options trading with probably the lowest fees in the industry
- Retail and institutional clients
- Traders seeking various platforms and accounts
- Beginners wanting free trading tools and educational material
- Traders incorporating advanced tools and algorithm systems
- Strongly regulated broker
- Swap-free accounts available
- Enables access to various markets and asset classes
- Fast execution speed in milliseconds
- Crypto trading available 24/7 with 0 Commissions, 0 Swaps
- Deposits and withdrawals in BTC, ETH and USDT
- Free educational content
- Negative balance protection
- Mobile app available for account management
- User-friendly client area
- Free demo accounts
- Live chat is unavailable on weekends
Tickmill is a platform that is designed to give you access to all the asset classes in which you might want to invest, including CFDs, precious metals, stocks, commodities, options and futures. Because you gain access to exclusive analysis items and trading tools, you have a much easier time managing your futures investments.
Plus, you can invest in several futures exchanges with leverage up to 1:500, including:
- CME
- CBOT
- NYMEX
- COMEX
- EUREX
- ICE Futures Europe
Generally, you can invest in futures that relate to:
- Stocks
- Indices
- Forex
- Metals
- Crypto
- Energy assets
Certain futures are most popular, including an S&P 500 micro e-mini, NASDAQ 100 micro e-mini and micro Bitcoin futures.
You can buy into futures with low fees and transparent commissions. There’s also ultra-low latency and seamless trading for high volume traders who are always on the go.
New offer! New clients that sign up in the next 3 months and choose a trading platform (CQG Desktop or TradingView Pro), Tickmill will reimburse all the platform’s costs and fees for 3 months from the date of enrollment. For each trade on E-mini and Micro contracts, Tickmill reimburses up to 16% of your trading commissions.
Pros
- Connects to several futures exchanges
- Low fees
- Valuable offers available
Cons
- May confuse novice traders
6. Best for Micro Futures: Optimus Futures
Optimus Futures is a leading discount futures broker offering highly customized trading solutions geared towards cost-conscious retail traders with an eye for technology and personal service. Customers gain access to premium tools at no additional cost such as depth-of-market surface, footprint charting, and real-time news alerts along with a fully integrated trading journal.
Users can register a trial version of their software to take a test-drive of the platform, unlocking many of the analysis and charting features including unlimited simulated trades. Traders can also leverage Optimus Futures 3rd party app integration, allowing you to choose the futures trading platform best suited for you.
- Low account minimums, commissions, and margins
- Futures & micro futures traders
- Beginner futures traders
- Unlimited simulated trading
- Low day trading margins
- Highly experienced and competent technical support
- Customizable data fees and order clearing
- Limited to derivatives trading like futures
- The selection of data feeds and clearing firms can be overwhelming for newer traders
Optimus Futures is a discount futures broker geared towards both beginner and experienced traders alike.
With low account minimums, fast account approvals and easy funding and withdrawals, Optimus Futures is an ideal solution for anyone interested in trading CME Group’s micro futures with free platforms and low margins. Optimus customers also get access to dedicated staff to address your trading needs at every step, from initial account application and platform set-up to providing on-going education and resources to help you learn more about the futures markets via guides, videos, podcasts, and articles.
Pros
- Low minimums
- Dedicated customer support
- Easy platform setup
Cons
- Limited trading options
7. Best for Early Investors: Generic Trade
Generic Trade calls itself a “no bells, no whistles” broker, but that doesn’t mean it contains limited offerings. The company features trading for futures and options on futures. Research is limited, but customer support is available 24/7 and direct market access guarantees fast trades at optimal prices.
Generic Trade’s big selling point is its flat $0.59 commission on all trades. Better educational materials and platform varieties are available elsewhere but Generic Trade offers true bang for your buck — one of the most important variables when comparing brokers.
- Futures Traders
- Options Traders
- Low volume derivatives traders
- Flat $0.59 commission on all trades, regardless of account size or volume
- No minimum needed to open an account
- Exchange minimum margin and aggressive day trading margin
- Contracts available for most asset classes
- 24/7 tech support and customer service
- No volume discounts
- Must pay platform fee to use full suite of trading tech
- Even though the free Generic Trader Online offers real-time quotes and charts, they are not streaming and do not offer market depth. Also, the trading tools are not nearly as robust as the other platforms
Generic Trade has some of the lowest commission fees of any futures traders at a maximum of $0.59 per trade. Generic Trade prides themselves on transparency and keeps their prices lower than other futures brokers by eliminating the need for salespeople and brokers.
The firm believes modern traders already have such a wealth of information at their disposal they mainly need a firm to execute their trades at the lowest cost. It also doesn’t have minimum account balances and volume requirements, making it assessable to most traders.
Pros
- Low fees per trade
- No sales team
- Quality execution
Cons
- Fees can accumulate for volume traders
8. Best for Advanced Traders: Tradestation
TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.
- Advanced traders
- Options and futures traders
- Active stock traders
- Comprehensive trading platform and professional-grade tools
- Wide range of tradable securities
- Fully-operational mobile app
- Confusing pricing structure to leave new traders with a weak understanding of what they pay
- Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
TradeStation offers 2 distinct account types: its basic TS GO account aimed at new trades and its more in-depth TS Select account aimed at more advanced traders looking for a comprehensive set of tools and research options.
There’s no minimum account balance required to open a TS GO account. TS Select accounts require a $2,000 minimum deposit.
Pros
- Easy account setup
- No minimums for GO users
- Works well for advanced traders
Cons
- High minimums for Pro users
9. Best for Day Traders: TD Ameritrade
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
TD Ameritrade requires a low account minimum at $1,500 but it’s $2.25 per contract, per side (plus exchange and regulatory fees). TD Ameritrade’s day trade margin is 25% with a $15,000 minimum with virtual trading capabilities and over 60 futures products. With Thinkorswim, there’s no question that entering and executing orders are fast, with many advanced features.
Pros
- thinkorswim makes trading easier
- Fast order execution
- Virtual trading options
Cons
- High minimums
What Matters Most When Trading Futures Contracts?
Ultimately, depending on the trader, the futures broker characteristic that matters to one trader may matter more or less to another. For example, each trader’s preference on a platform can vary widely. Not every trader will agree on what he or she would like to see on a broker’s platform. (Remember, not every painter prefers the same paintbrush, and the same goes for individual traders. Some don’t need all the bells and whistles.)
Perhaps one thing that raises the most red flags are those pesky commissions and margin fees. It might be reckless to choose a broker just because it’s the cheapest, but, boy, is it easy to overpay. It’s important to figure out on the front end exactly how much money will eke out during each trade.
And finally, customer service can make or break an experience with that particular broker. Determine your personal priorities, and use our guide to find the best futures brokers platform for you.
Want to learn more? Check out Benzinga’s guides on how to trade futures, how to buy oil futures and how to start online gold trading.
Frequently Asked Questions
Can you trade futures in a cash account?
Futures trading requires the use of margin, so you typically can’t trade futures in a cash account. If you invest using options, then cash accounts don’t make options trading impossible. There are only a limited number of options-related strategies you can use with a cash account.
Can you day trade futures?
A: You must have a sufficient amount of capital to start day trading futures. You must also come to terms with the fact you may lose that capital. Some futures brokers require a $10,000 minimum deposit to start day trading futures.
Day traders often buy large numbers of shares and wait for a small move before they sell. And there is a lot of risk in day trading.
It may be best to practice with a demo account. A futures demo account allows you to make trades and track how they would pan out without the risk of losing (or gaining) any real money.
Where can I find a list of the best futures brokers?
You can find a list of the best futures brokers on the list above.
The post Best Futures Brokers by Luke Jacobi appeared first on Benzinga. Visit Benzinga to get more great content like this.