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How to Identify the Best Futures Broker for You

March 2, 2018 by Daniels Trading| Futures 101

The futures markets are dynamic, ever-evolving environments. Securing the services of a competent brokerage firm is a necessity when attempting to navigate the ultra-competitive arena of active futures trading.

Selecting the best futures broker for your needs can be a complicated task. In addition to low commissions and eager customer support, many trade-related factors must be addressed when identifying the broker most suitable for your situation. With so many choices available, deciding upon the best option for your specific needs and resources is crucial to approaching the marketplace from a position of strength.

Basic Training for Futures Traders


In order to be classified as truly competent, futures brokers must be able to satisfy the requirements of several unique areas:

  • Trustworthy and reliable
  • Technologically proficient
  • Dedicated customer service

Trading futures successfully in the contemporary digital marketplace requires equal parts dedication, tenacity, and know-how. While a trader must supply the desire and stick-to-it-iveness, a competent broker can bring a variety of assets to the table.

Trustworthy and Reliable

Adhering to established regulatory requirements while placing the client’s best interests at the forefront of operations should be the primary goal of a brokerage service. In order to determine whether a firm is upstanding and worthy of your business, a few basic characteristics must be present:

  • Current Registration: The U.S. Commodities Futures Trading Commission (CFTC) requires all futures commission merchants (FCMs) and introducing brokers (IBs) to be members of the National Futures Association (NFA). The NFA is a self-regulatory body that enforces the financial and reporting guidelines of member firms. If a broker is not NFA certified, then further due diligence is necessary.
  • Reputation: A solid reputation is an important element of a brokerage firm. Outstanding lawsuits, client complaints, and allegations of fraud are often just the tip of the iceberg. If a brokerage service has a checkered past, or is new to the marketplace, it may be a good idea to research the firm thoroughly before becoming a customer.

If a broker has a good reputation within the industry and is currently satisfying regulatory requirements, then there is a good chance it is a reputable firm.

Technologically Proficient

The rise of electronic trading has created a need for advanced technological capabilities. A robust software platform is an absolute must, as is an existing infrastructure that promotes efficiency within the marketplace.

The best futures brokers are able to provide clients with the technology to compete with other market participants. Staying on the technological “lead lap” is crucial to achieving longevity in the marketplace. Here are several trade-related challenges that adequate technology can help properly address:

  • Excessive latencies
  • Advanced technical analytics
  • Optimal trade execution

Being able to enter and exit the market with maximum efficiency is a leading determinant of profitability in the trade of futures products. Dealing with a brokerage that provides clients low latency options, a comprehensive suite of technical tools, and optimal order execution is an integral part of being technologically proficient.

Dedicated Customer Service

Customer service is a core competency that all good futures brokers must have. Whether a trader needs assistance crafting trading strategies, answers to basic inquiries, or advanced tech support, access to a comprehensive service suite is an absolute must.

During market hours, being able to contact your broker is a critical component of customer service. Connectivity options to the trade desk via telephone or live chat on a 24/5 basis can be invaluable when troubleshooting technical issues or managing active positions.

In futures trading, lost time is often lost money. Being able to contact your broker quickly when faced with various challenges can be the key to preserving capital resources.

Getting Started

Daniels Trading offers participants of all varieties a robust service suite based upon competency and integrity. Daniels Trading has more than 21 years of experience in the futures industry, and its team has the knowledge and experience to help ensure your venture into the marketplace is a positive one.

For more information on how futures can become a productive part of your portfolio, check out DT’s variety of trading and investing options.

Basic Training for Futures Traders

Filed Under: Futures 101

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

Risk Disclosure

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.

GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.

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Risk Disclosure

THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.

THIS MATERIAL HAS BEEN PREPARED BY A DANIELS TRADING BROKER WHO PROVIDES RESEARCH MARKET COMMENTARY AND TRADE RECOMMENDATIONS AS PART OF HIS OR HER SOLICITATION FOR ACCOUNTS AND SOLICITATION FOR TRADES; HOWEVER, DANIELS TRADING DOES NOT MAINTAIN A RESEARCH DEPARTMENT AS DEFINED IN CFTC RULE 1.71. DANIELS TRADING, ITS PRINCIPALS, BROKERS AND EMPLOYEES MAY TRADE IN DERIVATIVES FOR THEIR OWN ACCOUNTS OR FOR THE ACCOUNTS OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS RISK TOLERANCE, MARGIN REQUIREMENTS, TRADING OBJECTIVES, SHORT TERM VS. LONG TERM STRATEGIES, TECHNICAL VS. FUNDAMENTAL MARKET ANALYSIS, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE INITIATION OR LIQUIDATION OF POSITIONS THAT ARE DIFFERENT FROM OR CONTRARY TO THE OPINIONS AND RECOMMENDATIONS CONTAINED THEREIN.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

TRADE RECOMMENDATIONS AND PROFIT/LOSS CALCULATIONS MAY NOT INCLUDE COMMISSIONS AND FEES. PLEASE CONSULT YOUR BROKER FOR DETAILS BASED ON YOUR TRADING ARRANGEMENT AND COMMISSION SETUP.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES. YOU SHOULD READ THE "RISK DISCLOSURE" WEBPAGE ACCESSED AT WWW.DANIELSTRADING.COM AT THE BOTTOM OF THE HOMEPAGE. DANIELS TRADING IS NOT AFFILIATED WITH NOR DOES IT ENDORSE ANY TRADING SYSTEM, NEWSLETTER OR OTHER SIMILAR SERVICE. DANIELS TRADING DOES NOT GUARANTEE OR VERIFY ANY PERFORMANCE CLAIMS MADE BY SUCH SYSTEMS OR SERVICE.

GLOBAL ASSET ADVISORS, LLC (“GAA”) (DBA: DANIELS TRADING, TOP THIRD AG MARKETING AND FUTURES ONLINE) IS AN INTRODUCING BROKER TO GAIN CAPITAL GROUP, LLC (GCG) A FUTURES COMMISSION MERCHANT AND RETAIL FOREIGN EXCHANGE DEALER. GAA AND GCG ARE WHOLLY OWNED SUBSIDIARIES OF STONEX GROUP INC. (NASDAQ:SNEX) THE ULTIMATE PARENT COMPANY.

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