Trade Futures in an IRA

Trading Futures and Options in Retirment AccountsTrade Commodities in an Individual Retirement Account

While we would never advocate a large percentage allocation of your retirement funds to commodity trading  via self-directed, full-service or even managed futures accounts; there are definite benefits to trading funds earmarked for commodities in a retirement account. 

The most prominent example being tax deferred or tax free growth depending on the type of qualified Independent Retirement Account (IRA).   In theory, trading accounts within the shelter of a tax friendly IRA have the potential to grow at much more rapid speeds relative to those in a non-qualified account (outside of the IRA umbrella). 

However, it is important to note that the advantages of an IRA enjoyed by profitable traders becomes a burden for those that are less fortunate in the markets.  Unlike losses in a non- qualified account, IRA losses are not tax deductible.  Additionally, there may be considerable fees associated with trading futures and options in an IRA which can exaggerate trading losses.  The custodian we work with offers extremely competitive custodian fees...please contact us for details.

Contact us at 1-866-790-TRADE (8723), This email address is being protected from spambots. You need JavaScript enabled to view it.

Which Brokerage Firms Allow Futures and Options Trading in an IRA?

DeCarley Trading offers traders the ability to speculate on commodity options and futures within a tax sheltered retirement account.  However, not all brokerage firms are capable or willing to enable such a trading arrangement.  For instance, due to risk management concerns, many of the popular discount brokerages or broker-dealers (those dealing with stock and futures clients) don't give clients the option to trade futures or options on futures within a retirement account.  Additionally, those discount firms that do accept IRA accounts might enforce stricter day-trading margins and or risk management techniques such as forced liquidation.

If you are interested in using IRA funding to speculate in commodities or the financial futures markets, contact DeCarley Trading today at This email address is being protected from spambots. You need JavaScript enabled to view it. or 1-866-790- TRADE (8723).    

Types of IRA's that can be Traded in Options and Futures

Traditional IRA - Annual contributions may be fully or partially deductible and earnings are tax-deferred; there are income restrictions.

Roth IRA - Annual contributions are not deductible, but withdrawals can be made at any age, tax-free of withdrawal. 

Rollover IRA - Allows retirement funds from another IRA or from an employer-sponsored plan such as a 401(k) to remain tax-deferred until the time of withdrawal.

SEP IRA - Small business retirement plan in which the business contributes the same percentage of compensation for all eligible employees.

SIMPLE IRA - Small business retirement plan in which employees are able to defer part of their salary on a tax-advantaged basis, as well as optional employer contributions.

How to Trade Commodities in an IRA

In order to allocate retirement funds to trading the options and futures markets it is required that you open an account with a custodian firm that allows self-directed retirement accounts to be distribute to the commodity markets.  There are only a handful of firms capable of such a service.

Once a self-directed IRA custodian is chosen, you must complete an application to open an account with your commodity broker of choice as well as an application with the custodian.    Upon completion of both applications, they should both be mailed to the custodian for processing. 

Here are a few custodians that we commonly do business with but you are free to shop around, as we are willing to work with any reputable firm.  In your search for a custodian, there are a few key concerns that you should focus on: the percentage of your funds that can be applied to your trading account and the fee structure.  Some firms limit the percentage of funds that can be forwarded to your futures trading account; clearly, if this is the case you would want to strongly reconsider using them as your custodian.  Likewise, you want a firm that is capable of offering competitive fees and efficient service. 

 

AdvantaIRA Trust, LLC

*RECOMMENDED

 
Eric DeCook | Associate
AdvantaIRA Trust, LLC
1520 Royal Palm Sq Blvd #320
Fort Myers, FL 33919
P: 239.333.4917
F: 239.466.5496
This email address is being protected from spambots. You need JavaScript enabled to view it.
 

Sterling Trust Company

P.O. Box 2526
Waco Texas 76702-2526
1-800-955-3434 - Option 2
www.SterlingTrustCompany.com
 

 

Millennium Trust Company

820 Jorie Blvd. Suite 420
Oak Brook IL 60523
1-800-932-0053
www.mtrustcompany.com
 
 

To open a Futures and Options IRA

 
 

 

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DeCarley Futures and Options Brokerage Services

Full- Service

Beginning traders are recommended to take advantage of the benefits of full service in order to gain orientation of the markets and trading in general.

Broker Assisted

If you are a relatively experienced futures and options trader but would like to have access to a broker, you may want to consider a broker assisted account.

Self-Directed

Are you an experienced trader? If so, you may not need a broker; nor do you need to pay for service that you won't use. If this is you, save yourself some money and go for this option!

Self-Directed Pro

If brokers and commission just get in your way, this is the plan for you. The Pro plan is reserved for those with ample account funding and trading experience to require minimal broker attention.

Managed Futures

Studies suggest traditional stock and bond portfolios can be improved with the addition of managed futures, let us help.

Automated Futures System Trading

We are partnered with a system vendor who has conducted due diligence on a handful of system developers, and over 300 systems, which have proven to be relevant.

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