Futures Brokers

Written by BK Shaw
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Some people prefer to meet their futures brokers face to face. Although I understand this old fashioned mentality, it really doesn't make any difference in the broker's ability to make or lose money. Just because you can look him or her in the eye, it does not mean he or she is going to do a better job for you than the broker across the country. In fact, I have known people who chose a broker based on the fact the broker lived down the street, and they never did a background check.

Futures brokers want to make money just like any other broker. Most brokers make money when you do, because you will place bigger trades when you are making money. I know of brokers who take percentages of profits. This seems more performance based and maybe something worth considering.

Futures brokers can be very different and so it's worth taking a little time before picking one. Many times they will call you out of the blue, catch you off guard and take advantage of someone's impulsive behavior. These days, with more and more people having access to trading information and resources online, the ball is able to bounce more in the speculator's court.

Choosing Futures Brokers

Referrals are a wonderful thing but hard to come by sometimes, because everyone might have a stock portfolio, but not everyone trades in these markets. You can do enough research online to check out a broker and his or her company. Spend time chatting with a broker before you make a decision, it's your money, feel good about the person you're entrusting your money with!

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