Futures Trading Online

Written by BK Shaw
Bookmark and Share

Futures trading online can be a very cost effective way to trade. You no longer have to fall prey to boutique brokerage houses charging monstrous commissions. As the practice of futures trading online becomes more popular, these large commissions will become a thing of the past. A general rule of thumb is never to find yourself paying more than 30 percent of the premium in commissions.

Many brokers make their living from commissions based on how much you trade and so obviously they have an incentive to see you trade as much as possible. With futures trading online, you are in charge of your own account and are not susceptible to the latest great idea from a broker. You can also benefit from being able to cut your losses short and not fall victim to the broker who wants to cling to a position in the hopes that it turns around at the last minute, because that will help him or her secure another commission.

Futures trading online can be a very exciting hobby. If it is a hobby, I highly recommend having a hybrid type of account where you direct trading, you come up with trading ideas, and you allow the broker to step in when necessary. I also recommend listening to the advice from the brokerage house. Very often a brokerage firm will put out a daily newsletter with trading suggestions.

Futures Trading Online Accounts

You can open an account easily online. Make sure you do a background check on a company before you open the account. Many brokers will suggest you check out the company but few speculators do their homework. You must do your due diligence!

Bookmark and Share