For contracts with delivery upon expiration, if you hold your position until its contract expiration date, you can become liable for payment of the entire trade value plus delivery costs. Yes, a margin account is required to trade futures with an online broker. The margin requirements will vary depending on the instrument being traded.

First, you must ensure you have enough capital available to meet any margin requirements i. The margin requirement is typically a percentage of the value of the underlying asset that each contract controls. Example: If you wanted to speculate on a price increase of the March Wheat contract Globex ticker code: ZWH1 , you would create a buy-to-open order to go long one Chicago SRW Wheat Futures contract. A sell-to-close order allows you to exit your existing long position. More details: If the price of wheat changes drastically, there can be variation margin, where you must post additional collateral or else risk having your trade closed early.

Overall, trading as a speculator is different than trading as a hedger or producer of the commodity, as hedgers remove risk by transferring it to you as a speculator. Yes, futures trading is risky and not suitable for everyone. Not only does it involve the use of leverage margin and potentially volatile assets, there is also the possibility of incurring an obligation to make or accept delivery of the underlying asset and being responsible for settling the total trade value.

As long as you close your position before expiration, you avoid the need to physically deliver or cash settle the trade value. While there are over brokers regulated with the CFTC, the vast majority are not set up for retail investors. Fidelity does not currently offer futures trading. Investments provided by Fidelity include stocks, fractional shares, OTC stocks, options, mutual funds, and bonds.

Futures, forex, and crypto trading are not available. Here are the Overall rankings for the 15 online brokers who participated in our Review, sorted by Overall ranking. For the StockBrokers. com 12th Annual Review published in January , a total of 3, data points were collected over three months and used to score 15 top brokers.

This makes StockBrokers. com home to the largest independent database on the web covering the online broker industry.

In order to assess the overall trading experience, we test across a wide range of devices and operating systems. Testing was done on devices for both Apple and Android operating systems. For Apple: iPhone XS with the most current iOS. As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy.

Brokers also were offered the opportunity to provide executive time for an annual update meeting. Our rigorous data validation process yields an error rate of less than. Learn more about how we test. Was this helpful? Yes or No. Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time.

He heads research for all U. com and is respected by executives as the leading expert covering the online broker industry. Chris McKhann has been in the industry for more than 20 years. His work has been cited in the Wall Street Journal, Reuters, the Financial Times, Forbes, CNBC, Nasdaq.

com and Nikkei. He has also been an advisor and outside trader for several hedge funds. He was one of the first traders to delve into the VIX tradable products and to write about them back in Chris is also an educator who teaches high school statistics, finance and computer science.

Carolyn Kimball is managing editor for Reink Media and the lead editor for the StockBrokers. com Annual Review. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex some might say befuddling topics to help consumers make informed decisions about their money.

Steven Hatzakis is the Global Director of Research for ForexBrokers. Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level.

Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative. com is committed to the highest ethical standards and reviews services independently. Learn how we make money. Home Online Trading Guides. September 28, Pros Web-based client portal great for casual investors Offers access to global markets Robust mobile app Cons Trader Workstation TWS desktop platform best suited for professionals, not beginners.

Pros Excellent desktop and web-based trading platforms Great for professionals Offers cryptocurrency trading Cons Research trails industry leaders Educational content split between two sites Scored poorly for customer service. Pros Multiple financial planning services Our top pick for IRA accounts Fractional shares available Cons Mobile app lacks alerts and real-time streaming quotes.

If you're a fan of mobile platforms — or trading forex on the go — see our picks for best forex trading apps here. What do you value most in a forex broker? Maybe you want to trade forex on the go. You might be looking for the most cost-effective forex brokers.

Or maybe you are a beginner forex trader who is just getting started. With a wide range of forex brokers comes a wide variety of features and specialties. IG offers the most tradeable CFDs in the industry, 19, CFDs, or "contracts for difference," enable traders to speculate whether the price of a stock, forex pair, market index, or commodity will go up or down without taking ownership of the underlying asset.

Alongside nearly 10, CFDs, CMC Markets offers the most tradeable currency pairs, with pairs that can be quoted both ways i. As a highly-trusted and regulated global brand, Interactive Brokers IBKR provides everything professional traders might need, from advanced trading tools and platform features to competitive pricing across a wide variety of markets, as well as connectivity to over global exchanges. In addition to competitive spreads and low commission-based pricing for forex, Interactive Brokers provides more third-party research than any other broker.

Interactive Brokers continues to innovate its platform offering, such as with its new Impact app for environmental, social, and governance ESG investing, alongside the related Impact dashboard available in its Trader Workstation TWS desktop and WebTrader platforms. Professional client status : In today's highly regulated forex world, traders who want to maximize their margin leverage must apply and obtain ESMA's professional client status with their broker.

Traders designated as Professionals in the EU do not receive negative balance protection and other consumer safety mechanisms such as eligibility for compensation schemes in the event of a broker's insolvency. To determine the best forex brokers for professional traders, we broke down each broker's active trading program, and compared all available rebates, tiers, and all-in costs. Trading platforms were then tested for the quality and availability of advanced trading tools frequently used by professionals.

Here are three of the most important factors to keep in mind when choosing an online broker for forex trading. Not sure how to go about choosing a forex broker? Check out our Forex Broker Compare Tool to compare dozens of the biggest forex brokers in the industry and analyze their top tools and features. Our Compare Tool is fed by data gathered by our expert researchers for our forex broker reviews , so you can feel confident you have the most up-to-date information at your fingertips.

To see an intuitive, comprehensive list of highly regarded regulatory agencies, check out our Trust Score page. Also, be sure to check out our in-depth reviews of forex brokers — we detail the regulatory status of each individual forex broker across the international forex landscape. Here are the Overall rankings for the 39 online brokers who participated in our Annual Review, sorted by Overall ranking. Was this helpful?

Yes or No. At ForexBrokers. com, our evaluations of online brokers and their products and services are based on our collected quantitative data as well as the qualitative observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research on the online forex brokerage industry, and we evaluate dozens of international regulator agencies click here to learn about how we calculate Trust Score. We test all available trading platforms for each broker — whether they are proprietary or come from third-party providers — and evaluate them based on a host of data-driven variables.

All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running macOS Ultimately, our rigorous data validation process yields an error rate of less than. For a full explanation and accounting of our research and testing process, please click here to learn more about how we test.

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks. Steven Hatzakis is the Global Director of Research for ForexBrokers. Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry.

A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U. as a Commodity Trading Advisor CTA. Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time. He heads research for all U. com and is respected by executives as the leading expert covering the online broker industry. John Bringans is the Senior Editor of ForexBrokers.

An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets. Joey Shadeck is the Content Strategist and Research Analyst for ForexBrokers. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.

com is committed to the highest ethical standards and reviews services independently. Learn How We Make Money. Home Forex Guides Directory. November 15, Best overall broker, most trusted Minimum Initial Deposit £ Pros Outstanding platforms and tools Over 19, tradeable instruments Competitive pricing Cons No predefined layouts on the flagship web platform Limited product range on MT4. Pros Flagship platform is top of the line Over 40, tradeable instruments Excellent customer service Cons High minimum deposit.

Pros Low trading costs Excellent web and mobile platforms Robust research materials Cons Educational offering could be improved MT4 offering limited to 62 symbols. Pros Robust platform for professional traders Wide range of global markets Thorough research offering Cons Trader Workstation platform is likely too complicated for inexperienced traders. Best desktop platform, U.

Pros Outstanding platform in thinkorswim Thorough research offerings Excellent educational materials Cons Does not offer copy trading Forex pricing is slightly higher than industry average. Pros Multiple high-quality platforms Excellent market research Wide range of markets Cons Only about instruments are available on the MT5 platform, compared to over 4, on non-MetaTrader platforms. Pros xStation 5 platform is an industry standout Robust selection of trading tools Excellent customer service Cons Pricing is just average.

Excellent all-round offering Minimum Initial Deposit £ Pros Excellent platforms and mobile app Extensive range of markets High-quality market research Cons Pricing is average for the industry Limited product range on MT4. Pros Large number of investors to copy Extensive range of markets to trade User-friendly platforms and app Cons No automated trading strategies Stops, limits mandatory on trades Research trails competitors.

security Find a trustworthy broker: ForexBroker. percent Pro tip: For most beginners, trading forex with an amount of capital that you can afford to lose can be a great way to learn with less risk, and can be of value if you focus on the percentage returns rather than their dollar value. smartphone Mobile forex trading If you're a fan of mobile platforms — or trading forex on the go — see our picks for best forex trading apps here.

biotech Methodology: To determine the best forex brokers for professional traders, we broke down each broker's active trading program, and compared all available rebates, tiers, and all-in costs. Submit Details. Steven Hatzakis Steven Hatzakis is the Global Director of Research for ForexBrokers. Blain Reinkensmeyer Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time.

John Bringans John Bringans is the Senior Editor of ForexBrokers. Joey Shadeck Joey Shadeck is the Content Strategist and Research Analyst for ForexBrokers. Saxo Bank. CMC Markets. Interactive Brokers. TD Ameritrade. City Index.

Written by Blain Reinkensmeyer , Chris McKhann Edited by Carolyn Kimball Fact-checked by Steven Hatzakis. A futures contract is an agreement to buy or sell a particular security or commodity at a future date. Futures markets were originally established to help farmers and other commodity producers hedge offset or reduce risk in the future. This is where the "futures" in futures markets comes from. For our Review, we tested 15 different online brokers, five of which offer futures trading. To find the best futures trading platform, we compared pricing e.

The Interactive Brokers Trader Workstation platform offers a slew of trading tools and every order type under the sun.

Popular with the institutional community, Interactive Brokers is not beginner-friendly but does offer the lowest margin rates in the industry. Read full review. TD Ameritrade's thinkorswim is home to an impressive array of trading tools.

Highlights for futures trading include paper trading with virtual money, price alerts, plotting economic FRED data, charting social sentiment, candlestick pattern recognition, real-time scanning and ladder trading. As a trading technology leader, TradeStation shines, supporting traders through its web-based trading platform as well as its desktop platform, which we rated No. Trading tools aside, TradeStation offers two pricing plans for futures trading, giving traders flexibility based on trade frequency and platform access.

Alongside the Charles Schwab website, Schwab offers customers access to two trading platforms: StreetSmart Edge desktop-based; active traders and StreetSmart Central web-based; futures trading. Each has its highs and lows, but overall, Schwab will satisfy most futures traders.

In addition to our top five trading platforms for futures in , we reviewed 10 others: Ally Invest , Fidelity , Firstrade , J. Morgan Self-Directed Investing , Merrill Edge , SoFi Invest , Tradier , Robinhood , Vanguard and Webull. To dive deeper, read our reviews. Trading futures contracts is a way to speculate on the future price of a security or commodity.

A futures contract enables an investor to buy or sell an asset at a preset time and price. For an example, let's dig into the operations at Old MacDonald's dairy farm. His cows eat a mixture of hay, which MacDonald grows on his own, and corn, which he has to buy. When corn prices are low, Old MacDonald makes more money, because it costs him less to feed the cows that produce the milk he sells.

But when corn prices are high, the profit margins on MacDonald Farm milk shrink. However, using futures contracts, Farmer Mac can lock in the price of corn from his suppliers before the corn growing season even starts. This lets him offset, or hedge, the risk of a difficult growing season that would cause corn prices -- and his bovine feeding costs -- to spike. In nonbucolic settings, investors can trade futures contracts on everything from market indices e.

Although futures are traded mostly by institutional institutional investors, retail investors can also speculate by using a futures trading platform. The regulatory body in the U. that oversees futures trading is the National Futures Association NFA. Commission aside, some brokers also charge monthly platform fees and market data fees, so it is important to consider all costs before selecting a futures trading platform.

Each online broker requires a different minimum deposit to trade futures contracts. Before you can trade futures, you must apply for margin trading and futures trading approval. To find the best futures broker, we compared each platform's trading tools and pricing.

Interactive Brokers offers the lowest pricing, but its platform is built for professionals and not easy to learn. On the other hand, TD Ameritrade provides an excellent downloadable trading platform; however, its pricing is more expensive. For perhaps the best balance of both pricing and tools, TradeStation is a winner. Trading futures requires a funded online broker account with margin and futures trading approval.

Once set up, research and determine which contract you want to trade, fill out the order ticket, then place your trade. Remember, each futures contract has different margin requirements. Also, be sure to know whether the contract is cash-settled or physically delivered upon expiration. For contracts with delivery upon expiration, if you hold your position until its contract expiration date, you can become liable for payment of the entire trade value plus delivery costs.

Yes, a margin account is required to trade futures with an online broker. The margin requirements will vary depending on the instrument being traded. First, you must ensure you have enough capital available to meet any margin requirements i. The margin requirement is typically a percentage of the value of the underlying asset that each contract controls. Example: If you wanted to speculate on a price increase of the March Wheat contract Globex ticker code: ZWH1 , you would create a buy-to-open order to go long one Chicago SRW Wheat Futures contract.

A sell-to-close order allows you to exit your existing long position. More details: If the price of wheat changes drastically, there can be variation margin, where you must post additional collateral or else risk having your trade closed early.

Overall, trading as a speculator is different than trading as a hedger or producer of the commodity, as hedgers remove risk by transferring it to you as a speculator. Yes, futures trading is risky and not suitable for everyone. Not only does it involve the use of leverage margin and potentially volatile assets, there is also the possibility of incurring an obligation to make or accept delivery of the underlying asset and being responsible for settling the total trade value.

As long as you close your position before expiration, you avoid the need to physically deliver or cash settle the trade value. While there are over brokers regulated with the CFTC, the vast majority are not set up for retail investors.

Fidelity does not currently offer futures trading. Investments provided by Fidelity include stocks, fractional shares, OTC stocks, options, mutual funds, and bonds. Futures, forex, and crypto trading are not available. Here are the Overall rankings for the 15 online brokers who participated in our Review, sorted by Overall ranking.

For the StockBrokers. com 12th Annual Review published in January , a total of 3, data points were collected over three months and used to score 15 top brokers. This makes StockBrokers. com home to the largest independent database on the web covering the online broker industry. In order to assess the overall trading experience, we test across a wide range of devices and operating systems.

Testing was done on devices for both Apple and Android operating systems. For Apple: iPhone XS with the most current iOS. As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy.

Brokers also were offered the opportunity to provide executive time for an annual update meeting. Our rigorous data validation process yields an error rate of less than. Learn more about how we test. Was this helpful? Yes or No. Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time.

He heads research for all U. com and is respected by executives as the leading expert covering the online broker industry. Chris McKhann has been in the industry for more than 20 years. His work has been cited in the Wall Street Journal, Reuters, the Financial Times, Forbes, CNBC, Nasdaq. com and Nikkei. He has also been an advisor and outside trader for several hedge funds. He was one of the first traders to delve into the VIX tradable products and to write about them back in Chris is also an educator who teaches high school statistics, finance and computer science.

Carolyn Kimball is managing editor for Reink Media and the lead editor for the StockBrokers. com Annual Review. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex some might say befuddling topics to help consumers make informed decisions about their money.

Steven Hatzakis is the Global Director of Research for ForexBrokers. Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level.

Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative. com is committed to the highest ethical standards and reviews services independently. Learn how we make money.

Home Online Trading Guides. September 28, Pros Web-based client portal great for casual investors Offers access to global markets Robust mobile app Cons Trader Workstation TWS desktop platform best suited for professionals, not beginners.

Pros Excellent desktop and web-based trading platforms Great for professionals Offers cryptocurrency trading Cons Research trails industry leaders Educational content split between two sites Scored poorly for customer service. Pros Multiple financial planning services Our top pick for IRA accounts Fractional shares available Cons Mobile app lacks alerts and real-time streaming quotes.

Other brokers tested In addition to our top five trading platforms for futures in , we reviewed 10 others: Ally Invest , Fidelity , Firstrade , J. info More details Remember, each futures contract has different margin requirements.

Submit Details. Blain Reinkensmeyer Blain Reinkensmeyer has 20 years of trading experience with over 2, trades placed during that time.

Best of all, you can trade virtually every futures market imaginable. This includes the likes eToro, Forex. Index Trading Platforms. Bitcoin Trading Bitcoin Trading Tips and Strategies Bitcoin Mining Bitcoin Forex Brokers Quotes from Bitcoin Believers Bitcoin Halving Bitcoin Brokers Best Bitcoin Trading Apps Bitcoin Trading Bots Cloud Mining. FXTrader is an order management tool that aggregates quotes from 14 major interbank dealers. Spreads are particularly competitive when trading major pairs. All in all, these bodies have strict expectations on the best forex brokers that they regulate - all of which center on fairness, transparency, and investor protection.

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