FROM OUR PARTNERS

Best Futures Trading Brokers of 2022

Ashley Jackson

Trade in the futures market and set yourself up for success by selecting a broker that understands your needs. We’ve considered the best futures trading brokers based on commissions, account minimums, ease of use, and overall quality.

Trade a wide range of financial assets

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Ally Invest offers competitive pricing on financial securities and robust research tools to help you make better-informed investment decisions.

What we like

  • Low cost commissions 
  • Wide selection of product offerings 
  • Up to $3,000 cash bonus
  • No minimum deposit required
  • Up to $75 for brokerage transfers

What we don't

  • Crypto not supported
  • Mutual fund fees

Get up to $625 when you open and fund an account

$0

Fee Per Trade

$0

Account Minimum

Overview

J.P. Morgan Self-Directed Investing offers beginners and seasoned investors free trades and a portfolio tool to help build out their asset allocation.

What we like

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Manage investments from a mobile app
  • Portfolio builder tool to help with asset allocation
  • Access to research and insights

What we don't

  • Limited accounts, such as no SEP-IRA
  • No fractional share trading

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Copy investments from successful traders

$0

Fee Per Trade

$0

Account Minimum

Overview

eToro is a multi-asset platform that offers both investing in stocks, cryptocurrencies, and trading in CDF assets. It provides an innovative approach to ‘Social Trading,’ also known as ‘Copy Trading.’ Social trading allows users to connect, share their trades, and copy successful traders’ trades for potential gains.

What we like

  • Commission-free real stock trading
  • Offers money and risk management tools
  • A lot of learning materials available
  • Offers a free demo account
  • Copy successful traders investments

What we don't

  • Higher spreads and rollover fees
  • High non-trading fees

Discover new ideas from an active investing community

$0

Fee Per Trade

$0

Account Minimum

Overview

Public provides access to a powerful suite of tools, daily insights from millions of investors, and curated content and news, so all members can have the tools and resources needed to invest with context.

What we like

  • All-in-one investing platform 
  • Wide selection of product offerings 
  • Commission-free
  • Insights from an investing community of millions
  • Invest in any fractional asset
  • Live in-app shows about the markets

What we don't

  • Limited account types
  • No in-person customer support

Margin trading available with premium account

$0 - $9.95

Fee Per Trade

$0

Account Minimum

Overview

Axos Self-Directed Trading provides investors commission-free trades and an all-in-one solution for banking and investments.

What we like

  • Commission free trading on most assets 
  • Easy to use platform
  • Wide selection of product offerings 
  • No minimum deposit required
  • Extended market hours for premium accounts
  • Joint accounts available

What we don't

  • Crypto not supported
  • Premium account required for certain features
  • No in-person customer support

Offers fractional share trading

$0

Fee Per Trade

$0

Account Minimum

Overview

SoFi allows you to trade cryptocurrencies, stocks, and ETFs. It also uses the SIPC protection scheme and offers up to $500,000 in insurance coverage.

What we like

  • Free trading on ETFs and stocks
  • Offers fractional shares
  • A wide variety of cryptocurrencies
  • Free financial advice
  • No account minimum

What we don't

  • Does not offer mutual funds, bonds and options
  • Limited track record

What do futures trading brokers do?

A futures trading broker is an individual or company that matches buyers and sellers of futures contracts. They act as a middleman between the trader and exchange.

The main responsibility of a futures trading broker is to match buyers with sellers of futures contracts at competitive prices while maintaining financial security for both parties involved in the transaction. The broker will act as an agent for both parties involved in a transaction and assist them throughout the process.

Why use futures trading brokers?

Here are some reasons to use a futures trading broker:

  • Provide you with advice and guidance: Trading in futures can be complicated, and a good futures broker will help you provide awareness of the risks associated with trading futures. They will also help set up your account, so you can trade safely online or over the phone.
  • Regulatory oversight: Both federal and state authorities highly regulate futures trading. All futures brokers must adhere to strict rules regarding margin requirements, trade execution, risk management, and more. An experienced broker can help you understand these rules and guide you through them as part of their overall service offering.
  • Margin requirements: Futures brokers offer more margin than traditional online brokers. Generally, the amount of margin required for commodities is lower than for stocks or options. This means you can get started with less capital and still be able to trade.

Are futures trading brokers safe?

Brokerage accounts are safe. You can keep your money safe by choosing a broker who offers the best security options and keeps your account information confidential.

What are the fees for futures trading brokers?

There are several types of futures trading brokers, and each has a different fee structure. Some brokerages charge a flat rate, while others charge an exchange fee plus a commission.

In addition to these fees, the CFTC requires that you pay regulatory fees for each contract traded. The fees vary depending on the underlying commodity and whether it is traded on an organized exchange or over the counter (OTC).

Futures trading brokers generally charge $2.25 per contract plus exchange and regulatory fees. Brokers can also charge additional fees for services such as margin accounts and clearing.

What can you invest in through futures trading brokers?

Futures trading brokers offer a wide range of investment options. The most common ones include:

  • Stocks: Futures contracts on individual stocks allow you to speculate on a specific stock’s price movement without actually buying it. Depending on the type of contract, there are different ways to benefit from the price rise or fall in stock. For example, you could use a call or put option contract if you think the price will rise above or fall below a certain level at some point in the future.
  • Bonds: Futures contracts on bonds allow you to speculate on interest rates and bond yields without buying actual bonds. These contracts are usually traded through exchange-traded funds (ETFs) and are popular with people who want exposure to bonds but don’t want to buy them directly.
  • Commodities: Futures contracts on commodities such as crude oil, natural gas, and heating oil allow you to speculate on future prices without owning them physically. The contracts trade like stocks, so they can be bought or sold at any time during the trading day, unlike physical commodities, which have fixed delivery dates that must be delivered.
  • Mutual funds: Mutual funds are investment funds made up of many different stocks and bonds. They are an excellent way to diversify your portfolio and spread your risk.
  • ETFs: Exchange-traded funds are similar to mutual funds, except they trade like stocks on an exchange. They may track a certain index or be customized to follow a particular group of stocks.
  • Options: Options are contracts that give the buyer the right but not the obligation to buy or sell a stock at a specified price on a specific date. If you think a stock will go up or down, you can buy put options or call options.

Benefits of investing through futures trading brokers

The benefits of investing through futures trading brokers include:

  • Liquidity: A futures trading broker allows you to enter and exit positions quickly and easily. All trades settle daily so that there are no problems with the delivery of securities or payment for trades.
  • Low minimum investment requirements: Since most futures contracts are traded on exchanges, there are no minimum investment requirements. Investors can trade as little as one contract or several hundred at once, depending on their budgets and needs.
  • Diversification: Futures are traded on various underlying assets, including stocks, currencies, and commodities. This means you can use futures to diversify your portfolio by investing in different investments.

How to choose the best futures trading brokers

Here are some factors to consider when choosing your broker:

  • Futures expertise and support: A futures broker should understand how futures trading works and what to look for when trading contracts. They should be able to advise you on whether or not they think a particular contract is suitable for you, how to avoid common mistakes, and other valuable information.
  • Cutting-edge options: A cutting-edge option gives you more variety in trading options. It refers to the fact that you can access multiple trading platforms from one brokerage firm. You will not be tied to one platform or server if it goes down or stops working.
  • Brokerage fees: Some brokers charge an additional commission fee on top of the normal exchange fee if you want to buy or sell a contract before maturity. These brokerage fees can quickly add up.
  • Multiple trading platform options: The advanced trading platforms will allow you to place orders directly from your desktop, mobile device, or tablet.