Perhaps the single largest advantage that participants in the modern financial markets enjoy is ease of entry. Traders no longer need to purchase a seat at the exchange or play rounds of golf with a stuffy broker to gain market access. If you have computing power, risk capital, and an online brokerage account, the rest is elementary.
Thanks to advances in information systems and internet technologies, the barriers to entry facing aspiring futures traders have been vastly reduced. For anyone wondering how to start trading futures, the good news is that you can be up and running in under a week.
Day #1: Hardware and Internet
To engage the capital markets in the digital era, you need two essential elements: computing power and an internet connection. The first step in answering the question of how to start trading futures is to secure each.
Once again, there is good news ― almost everyone in the developed world has access to some sort of computing device with an internet connection. You most likely already have these essentials at your disposal.
Day #2: Open a Brokerage Account
Unless you have an exchange seat, you’re going to need to open a brokerage account to gain access to the futures markets. A broker facilitates trading activities through routing client orders to the exchange and extending margin trading privileges. Without the services of a reputable and competent broker, active trading is largely a nonstarter.
If you’re concerned with how to start trading futures quickly, rest assured that applying for and opening a futures account isn’t difficult. Assuming you have internet connectivity and a CPU in place, you can complete this process quickly, often in less than 24 hours:
- Submit application: Simply fill out your broker’s online form, attach any required documentation, and click submit. FYI, futures account applications typically ask for contact information, a trading history, and assorted financial disclosures.
- Compliance review: Upon the application being submitted, the broker’s compliance department will review the documents. The approval or denial of the new account will be officially listed as “pending.”
- Addendums: If compliance requires any additional materials, you must submit them before the process continues. This information varies from broker to broker and depends upon the account type being requested.
- Approval/Denial: Once the broker-specific requirements are satisfied, the account will be either approved and opened, or denied.
From top to bottom, the procedure for opening a brokerage account is straightforward. Aside from special circumstances, opening a trading account via the online application process is simple and fast.
Day #3: Deposit Funds
Before going live, the trading account must be funded. For futures, most online brokers offer several alternatives for customer deposits, some of which may be rapidly executed. Here are two of the fastest:
- Bank wire: Wires are processed in real-time and frequently go through on the same business day.
- ACH: ACH deposits require a third party processor and typically require a full 24 to 48 hours to be completed.
In either case, the key to making sure your account funds quickly is to get to the bank early! If your transaction requires personal attention, and the bank’s lobby opens at 9:00 AM, be there at 8:50! Requests processed before 12:00 PM EST have a great shot of posting ASAP.
Interested in How to Start Trading Futures in Under a Week?
For those wishing to know how to start trading futures quickly, the answer is simple: get going now! Barring any unusual circumstances or requests, you’ll be trading in a matter of days not weeks.
If you are eager to become active in the futures market, check out the account types available at Daniels Trading. Whether you’re opening a self-directed or full-service account, the application process is online, efficient, and convenient.