A futures trading contract is a kind of agreement made between two different parties. Out of these parties, one is the buyer and the other the seller. The buyer agrees to buy a particular quantity of some shares at a given time shortly.
The price of the shares that will be bought is also fixed. All these specificities are agreed to by both parties. The size of the contract and date of expiry of the futures trading contract are both standardized.
Both parties do not know each other. Futures trading contracts can be on various assets like Gold, metals, commodities, equity, derivatives, etc., the recent one being Bitcoin.
Futures trading is mostly done by investors from institutions like hedge funds, but investors from the retail sector can do it too.
Everyone wants to know who the best futures broker is in 2021. While deciding on a broker, futures traders who are serious, you must take into consideration commissions, kind of platform, customer service efficiency, and research factors. Now that we are clear on the concept of futures brokers let’s dive into who you can approach as the best futures broker in 2021.
With 607,000 client brokerage users and 128.4 billion dollars are customer equity, these brokers have their headquarters in Greenwich, Connecticut. They provide a Trader Workstation, which is one of the best platforms for trading within this industry. They are well-known to offer traders access to 135 markets in as many as 33 countries. Interactive brokers offer a total of 65 types of orders.
Interactive brokers offer two major plans. One is for professionals and the other for non-professional investors. The majority of their clientele are professionals and institutional investors. They lead with very low margin percentages ranging from 1.55% to 0.74% in the case of clientele who hold higher than 1 million dollars with them.
With interactive brokers, their minimum deposit, stock trade fee, and options base fee are $0. The Trader Workstation provides various tools for trading. They also provide mobile trading options, which are supported by all mobile phones. They offer a variety of features and should be considered as one of the best futures brokers in 2021.
With more than 80,000 users, they were found to be great when it came to trader technology. They support traders with their desktop-based platforms, their web-based platform, and one that is mobile-based. TradeStation is not the best for beginners. It does not provide great research on the company for casual investors.
They offer many structures for commission. But the major ones are TS Select and TS Go. They give zero-dollar trades. TS Select requires a minimum deposit but provides access to all three platforms. The price for futures is $1.50 for every contract. With TS Go, there is no deposit required, but any trading that needs to be done on the desktop platform incurs a fee of 10 dollars (for futures tradings $1.40)
With 11 million user accounts, this broker turned out to be the best in overall brokerage. Hence its mention in the best futures broker in 2021is inevitable.
Their desktop-based platform, known as thinkorswim, is extremely advanced in charting. A trader can use thinkscript, their coding language, to customize the data. There are more than 400 studies for each chart.
Ameritrade runs their own media channels, where they conduct interviews, commentary, and educational talk every day of trading. They do not run a browser platform anymore. Their ETF and stock trades are zero dollars.
They are the right brokers for beginners, as they offer great education, including webinars.
Being one of the very first and oldest brokerages in the US, the major benefits they offer include two mobile-based apps and zero dollar trades. E*TRADE is great for beginners and has 7.1 million users. At one time, many futures ladders can be experienced.
They have a widget for a fast trade, so firing off of orders can be done easily. Similar to options trading, futures trading position management can be done spontaneously. These features make E*TRADE one of the best futures broker in 2021.
With their headquarter in San Francisco, California, Charles Schwab has more than 6 trillion dollars in assets and 10.6 million brokerage accounts. Offering zero-dollar trades in stock, they offer all services in brokerage.
Schwab is meant for beginners taking into account their user-friendly website. For future trades, you can only use the StreetSmart platform that is central. You cannot use the Schwab website or StreetSMart Edge.
The research quality is extremely superior. Similar to TD Ameritrade, they offer live broadcasts every day. They also offer zero-dollar stock and ETF trades.
NinjaTrader is well-known for its trading platform in forex, options, and futures. New traders can use the completely free version. The free platform is great to get used to it before actual live trading. This platform is the best for advanced and futures trading. Traders can unlimitedly use charting, simulation for trading, and market analysis.
NinjaTrader has more than 60,000 users, offers a range of assets focusing on futures trading on CME, NYBOT, Eurex, and CBOT exchanges. Their advanced tools like semi-automated execution, lowest commissions in this industry, and proactive community help make it to the list.
Tradovate offers an easy approach to futures trading, with a flat price for membership and upcoming technology. Their brokerage app is available on any device. They offer many educational videos on their website. You can also choose to try their 14- day free demo.
Futures traders get to experience more than 40 futures tools, easy cross-device trades, replay tools for the market, support through live chat, and integrations regarding third parties. These features lead Tradovate to be one of the best futures broker in 2021.
In this article, we have gone through some of the best futures broker in 2021 you can look for. As a beginner trader, a few brokers are preferred to others. But as you grow and learn, you can opt for any good broker.
Every trader has a set of priorities they look for above others. Ensure you consider all these factors given above before you choose the best in 2021 for your need.