Shopping for a commodity brokerage is overwhelming; what should I be looking for?

Traders tend to spend endless hours researching the markets, but they fail to allocate the proper effort into choosing the right brokerage firm. In my opinion, it is this single decision that might be the most critical determinant of success or failure.

Each trader has a unique set of “needs” relative to trading style, experience level, account size, and other factors. Thus, there isn’t a blanket answer to this question; nor is the subject black and white.

First, let’s discuss the primary types of brokerage firms, some of the organizational characteristics to be aware of as a consumer, and the pros and cons of each. Next month, we’ll discuss appropriate service levels and trading costs for various types of traders.

Types of Brokerage Firms


Read more about avoiding frustration when searching for brokerage firms to trade futures at in the October 2014 issue of Stocks & Commodities Magazine 

Futures and Options Trading Booksby Carley Garner

What People are Saying about Our Commodity Trading Books

Choosing a Futures Broker and Brokerage Service

Full-Service or Online Trading?

The decision to trade online or through a full-service commodity broker will undoubtedly make a large impact on your bottom line.

Learn More

A Fair Commission Rate vs. Low Commission

To look at commission rates objectively, we must understand the background of the futures industry and how brokerages accept risk for fees.

Learn More

Choosing a Commodity Brokerage Firm

Deciding on a commodity brokerage firm is a significant decision and shouldn’t be taken lightly. Not all traders and brokers are compatible.

Learn More

Choosing a Futures and Options Broker

Most traders in search of a futures broker are concerned primarily with trading platforms, commission, and quality guidance.

Learn More

The Truth about Futures Commission

The goal of futures trading should be to MAKE money, not SAVE it! Discount commodity brokers cut corners that cost their clients time & money.

Learn More

Commodities via Futures or ETFs?

A key difference to trading commodity futures over ETFs is leverage, but there is more to discuss, such as taxes, market hours, and efficiency.

Learn More