Best broker for options gold

Best Online Brokers for Futures Trading and Commodities. Futures trading is complicated business, even for experienced investors, and so is shopping for a brokerage firm to use for futures and commodities trading. It’s not just about commissions and customer service (although both are important factors to consider). Trading in futures requires using a brokerage that offers certain kinds of investing tools, research and data that are different from those you’d seek in a company to house your IRA or roll over your 401(k). Here, you’re looking for the highest level of real-time data and quotes, an intuitive trading platform, an abundance of charting and screening tools, technical indicators and a wealth of research — plus the ability to leverage your account with reduced day-trading margin requirements. All of that, and you still want low costs and high-quality customer support. These are the features and services we focused on in our rankings, concentrating on the world of online discount brokers that serve self-directed traders (not pros) seeking to quickly execute their own futures strategies. Best Futures and Commodities Brokers. Low day-trading margin. One note before we dive into the top-ranked brokers for trading futures: Investing in futures is a method that earns a few caveats from NerdWallet. It comes with risk, as do all investing strategies. But futures trading is even riskier: You’re making a bet on the direction a market is going to go, an outcome that is difficult for even professional analysts to forecast.

In other words: You can do a lot of research, feel confident in your prediction and still lose a lot of money very quickly. If you’re new to futures trading and want to dabble in this method, you should understand how to trade futures, determine the risks involved, and have your financial bases covered. The best online brokers for trading futures overall. TradeStation and Generic Trade do a good job of serving two different types of futures traders. See our TradeStation review. Commission: $0.25 – $1.20 per contract, per side + exchange and NFA fees Day-trade margin: 25% on select contracts none on most contracts Account minimum: $5,000 Futures products: 80+ Trader support: 24-hour phone support from Sunday 3:30 p. m. to Friday 6 p. m. Eastern Promotion: 20% off commissions: up to $500 for accounts under $100,000, to $1,500 for $250,000 or more. See our Generic Trade review. Commission: $0.59 per contract, per side + exchange and NFA fees Day-trade margin: 25% Account minimum: $0 Futures products: 50+ Trader support: 247 phone support. The best futures broker should have the tools you need to research, test, customize and quickly execute your trades, round-the-clock customer service (access to a trading desk for after-hours support), reliable technology, and reasonable commissions and day-margin rates. That’s a tall order for any single broker to fill. Then again, the best futures broker for you may not need to check all the boxes as long as it excels in the areas of service that matter most to you. In the sections below, we highlight the standout firms in various categories.

It’s hard to crown one as the futures trading MVP of the bunch, but both Generic Trade and TradeStation come pretty close. Each excels in different ways: TradeStation is a strong choice for seasoned tech-savvy futures traders. It started out as a platform solely for use by professional traders as is clear by the breadth of markets covered, data offered, and the range of trading options, research and customizable tools at each client’s fingertips. That said, traders pay more to access such high-caliber offerings. Generic Trade — a futures - and options-only brokerage firm — stands out as a “nothing fancy” lower-cost entree into futures and options trading. To see if its bare-bones approach suits potential customers, the company offers a two-week demo account to fully test-drive the service before making a commitment. Generic Trade charges a flat $0.59 per-contract, per-side commission, has a $0 account minimum and no inactivity fees, and provides a decent futures trading platform and selection of tools and research. Also worth a closer look in the “Best Overall” category is E-Trade, which falls somewhere between the two on the low-endhigh-end spectrum. Low-cost brokers for futures trading. Based on commissions, fees and other costs that add to the futures trader’s bill, bargain shoppers should consider these brokers.

Commission: Tiered: Over 2,000 contractsmonth: $0.45 per contract, per side 251 to 2,000 contracts: $0.65 up to 250 contracts: $0.85 + exchange and NFA fees Day-trade margin: 25% Account minimum: $500 Futures products: 50+ Trader support: 24-hour phone support from Sunday 5 p. m. to Friday 8 p. m. Eastern. Commission: Tiered: 100,000+ contractsmonth: $0.25 per contract, per side over 50,000: $0.30 over 10,000: $0.35 over 2,000: $0.45 over 500: $0.50 less than 500: $0.60 + exchange and NFA fees Day-trade margin: 25% Account minimum: $10,000 Futures products: 60+ Trader support: 24-hour phone support from Sunday 8 p. m. to Friday midnight Eastern. Futures trading can become costly quickly. Investors can be subject to platform fees, data-feed fees, minimum-activity fees and fees to access premium reports and other research. Not even trading commissions — which all brokers charge “per side” (first when the contract is bought and again when it’s sold) — are easy to decipher. For example, what’s not included in most brokers’ advertised “per-contract” commission are two standard fees: An exchange fee (which varies depending on the futures exchange used to make the trade) and a $0.01 per-side assessment fee paid to the National Futures Association (NFA), the industry’s self-funded regulatory body. When companies cut costs for one service they often make up the difference elsewhere, typically by charging platform and data fees. Here’s where MB Trading (which was purchased by TradeKing last year) and Lightspeed Trading stand out by offering reasonably priced service all around. Both brokers have tiered commission schedules based on monthly volume. Lightspeed’s commissions (not including the aforementioned exchange and NFA fees) range from $0.25 for high-rollers with 100,000 monthly contracts to $0.60 for those dealing with less than 500 per month. The range at MB Trading is $0.45 per contract for more than 2,000 contracts to $0.85 for 250 and fewer. Customers get free access to all the bells and whistles on the company’s desktop, web and mobile platforms. It charges extra for data, but that is a reasonable $10 to $15 a month, depending on the data selection. Lightspeed customers also have free access to its Livevol X and WebTrader platforms where Level 1 quotes are free.

Best trading platform, research and tools. These brokers offer the highest level of real-time data and quotes, charting and screening tools, technical indicators and a wealth of free research. See our TradeStation review. Commission: $0.25 – $1.20 per contract, per side + exchange and NFA fees Day-trade margin: 25% on select contracts none on most contracts Account minimum: $5,000 Futures products: 80+ Trader support: 24-hour phone support from Sunday 3:30 p. m. to Friday 6 p. m. Eastern Promotion: 20% off commissions: up to $500 for accounts under $100,000, to $1,500 for $250,000 or more. See our TD Ameritrade review. Commission: $2.25 per contract, per side + exchange and NFA fees Day-trade margin: 25% with $15,000 minimum Account minimum: $1,500 Futures products: 60+ Trader support: 247 phone support. The only brokers that qualified for our best futures trading platform category were those offering advanced research, analytics, charting and screening tools, lots of technical indicators and free access to studies, a variety of streaming news and research as well as automated futures trades. Four brokers met all the criteria: Interactive Brokers, OptionsHouse, TradeStation and TD Ameritrade’s thinkorswim platform. But the last two stand apart. TradeStation’s desktop platform is aimed at tech-savvy retail and professional traders seeking a luxury-class experience. Its array of features includes one-click order entry, automated trading strategies, 24-hour global market analysis, 48 years of historical futures market data and the ability for investors to design their own trade-method customizations. Access comes at a price, however: $249.95 a month for a subscription to the software for nonprofessional traders. TD Ameritrade’s thinkorswim platform is geared more toward the retail investor, but that doesn’t mean it is lacking.

The platform is known for its deep bench of free technical studies and research, and reports (including ones offering insights from prominent investors in the futures trading industry) and access to live futures pit audio. Both firms offer one-click order entry, ample technical indicators (160-plus at TradeStation and 100-plus at thinkorswim) and access to trading specialists when you most likely will need to get in touch. Low day-trading margin requirements. Traders who want the most leverage will appreciate the low day-trade margins at these brokers. See our Generic Trade review. Commission: $0.59 per contract, per side + exchange and NFA fees Day-trade margin: 25% Account minimum: $0 Futures products: 50+ Trader support: 247 phone support. Commission: Tiered: Over 2,000 contractsmonth: $0.45 per contract, per side 251 to 2,000 contracts: $0.65 up to 250 contracts: $0.85 + exchange and NFA fees Day-trade margin: 25% Account minimum: $500 Futures products: 50+ Trader support: 24-hour phone support from Sunday 5 p. m. to Friday 8 p. m. Eastern. Futures contracts are highly leveraged: You can put down a small amount of money — generally 5% to 10% — on a large contract. That sounds like a good thing, and it is. But it also adds to the risk: Leverage can lead to bigger gains and bigger losses, and if your account dips below the maintenance-margin requirement, your broker may issue a margin call that requires you to add funds immediately. That means you need money available above and beyond any positions you hold.

The initial overnight margin requirement will be set by the exchange and it doesn’t vary by broker. But futures contracts are often bought and sold within the same day, and some brokers offer a reduced margin requirement for day trades generally a percentage of the initial margin requirement. If leverage is important to you, Generic Trade and MB TradingTradeKing both offer 25% day-trade margins and some of the lowest minimum-balance requirements available for a futures trading account. Generic Trade also offers an Enhanced Intraday Margin System on request this is available during limited trading hours for seasoned traders who maintain a $1,000 balance and may reduce the margin requirement even further. (Lightspeed, mentioned above, also offers 25% margin, albeit with a higher account minimum.) The best futures brokers for trader support. These brokers offer phone support around the clock when futures markets are open, in addition to online educational resources. See our TD Ameritrade review. Commission: $2.25 per contract, per side + exchange and NFA fees Day-trade margin: 25% with $15,000 minimum Account minimum: $1,500 Futures products: 60+ Trader support: 247 phone support. See our Charles Schwab review.

Commission: $3.50 per contract, per side + exchange and NFA fees Day-trade margin: 25% to 50% depending on contract Account minimum: Set on a case-by-case basis Futures products: 75+ Trader support: 24-hour phone support from Sunday 5:30 p. m. to Friday 5:00 p. m. Eastern Promotion: $100 cash bonus with a qualifying deposit. We’re assuming you’re an experienced trader if you’re not, click away because futures trading is not where you get your start. But even experienced traders need assistance: It can take time to adjust to a new trading platform, and many of the best ones are so advanced that even the most-active traders could use a road map. You also may want to call and speak to a trading desk, or place broker-assisted trades occasionally — either to transact when you’re away from your computer or discuss a method with a like-minded person. All of that means you may want a futures brokerage that has expert traders available during futures hours, which are different from standard trading hours: Look for 24-hour service from Sunday afternoon through Friday evening. Charles Schwab and TD Ameritrade both excel in their trader support, with around-the-clock qualified brokers and lots of online education. The trade-off: You’ll pay more in commissions at both brokers, but data and trading platforms are free. Best brokers for trading futures and commodities: summary. Low day-trading margin. Low day-trading margin. Dayana Yochim and Arielle O’Shea are staff writers at NerdWallet, a personal finance website. Email: dyochim@nerdwallet.

com and aoshea@nerdwallet. com. Twitter: @DayanaYochim and @arioshea. The Best Online Brokers for Stock Trading. Power Trader? See the Best Online Trading Platforms. Find the Best Online Brokers. New Investor? See the Best Brokers for Beginners. Disclaimer: NerdWallet has entered into referral and advertising arrangements with certain broker-dealers under which we receive compensation (in the form of flat fees per qualifying action) when you click on links to our partner broker-dealers andor submit an application or get approved for a brokerage account.

At times, we may receive incentives (such as an increase in the flat fee) depending on how many users click on links to the broker-dealer and complete a qualifying action. Forex Broker Comparison. Looking for the best online broker for stock, options, or FOREX trading? Nasdaq. com's advertising partners are among the best online brokerages in the business and the lists below provide a great starting point in your search for the right broker. Helpful links. Advanced Forex. Forex Tools. Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages. Customize your NASDAQ. com experience. Select the background color of your choice: Select a default target page for your quote search: Please confirm your selection: You have selected to change your default setting for the Quote Search. This will now be your default target page unless you change your configuration again, or you delete your cookies.

Are you sure you want to change your settings? Please disable your ad blocker (or update your settings to ensure that javascript and cookies are enabled), so that we can continue to provide you with the first-rate market news and data you've come to expect from us. Best Options Trading Brokers and Platforms. NerdWallet offers financial tools and advice to help people understand their options and make the best possible decisions. The guidance we offer and info we provide are deeply researched, objective and independent. We spent over 300 hours reviewing the top online brokers before selecting the best for our readers. And to help you find the one that’s best for you, we’ve highlighted their pros, cons and current offers. Who is the best options broker today? The answer depends on whom you ask and what they value. For some investors, the best broker for trading options is the one with the cheapest commissions. Others prioritize trading tools, platform design, research, customer service or all of the above. While most of the brokers on our best-of list below would be a good, all-encompassing choice for many investors, we’ve also highlighted the standout candidates in specific areas that matter most to options traders. Unsure what you’re looking for?

See how to choose an options broker for more on what can make or break an options trading experience. Summary: Best online stock brokers for options trading. Best for low-cost. Best options trading platform. Best for research and education. Best overall for options trading. Our top picks cover all the option trader needs — access to high-quality research, analytical tools, a user-friendly platform — at reasonable prices. TD Ameritrade and Interactive Brokers earn high marks for options investors for their advanced trading platforms, deep bench of research and tools, plus their high-caliber options trading capabilities. TD Ameritrade handily serves option traders no matter where they are on the learning curve. The broker’s thinkorswim platform offers a robust options trading experience for active investors seeking professional-grade tools to identify trading opportunities, analyze potential risks and rewards, test trade strategies and quickly place even the most complex options trades. The broker’s web-based Trade Architect platform is for investors just getting into options or those who don’t require a high-octane platform.

Its stripped-down, easy-to-use interface won’t overwhelm newbies. And although Trade Architect isn’t as fully stocked with tools and data as thinkorswim, it’s no slouch, either. Intermediate investors will find advanced features like a marketoptions heat map, screening and tradefinder tools, and streaming news. Get details in our TD Ameritrade review. For cost-conscious, active options traders looking for low costs and a platform with a lot more meat on its bones, Interactive Brokers may be more your style. Interactive Brokers charges just 70 cents per contract with no base fee ($1 minimum order), plus discounts for larger volumes, if you can manage the $10,000 account minimum. Its Trader Workstation platform (with an options method lab) is considered one of the best and most sophisticated around. But watch other fees to ensure that the lower commissions pay off. Both brokers allow prospective clients to test-drive the goods without putting any real money on the line. TD Ameritrade offers a paperMoney virtual trading account to test out the thinkorswim platform. At Interactive Brokers, once customers open a real account (which has a $10,000 minimum funding requirement), they can set up a paper trading account that offers them hands-on practice using IB’s Trader Workstation platform and tools. Best brokers for low-cost options trading.

These brokers offer competitively priced options trading commissions and have eliminated or dramatically capped minimum trading fees. In early 2017 most of the mainstream online brokers slashed commissions to levels once reserved for their deep-discount peers. That doesn’t mean that they’re the best deal in town for every investor. For active options traders, eOption earns five stars from NerdWallet for its low options trade commissions. The company charges a fixed $3 base plus 15 cents per contract. Another plus: eOption is known for having some of the lowest margin rates available. Although eOption charges a $50 annual inactivity fee on accounts that have placed fewer than two trades in the past 12 months or have less than $10,000 in credit or debit balances, the minimum trade workaround isn’t onerous, even for infrequent traders. Charles Schwab’s trade commission of $4.95 base rate plus 65 cents per contract puts it within spitting distance of deep-discount peers. Schwab recently fully took over the old OptionsXpress and incorporated that broker’s options experience into its own platform, with both web-based and mobile functionality. Commissions aren’t the only costs associated with trading options. Platform, data and other fees can quickly cancel out what you save on commissions. See our full reviews of Charles Schwab and eOption for details on what they offer. For those simply looking for a cheap way to execute options trades, Charles Schwab and eOption get the job done.

Best options trading platforms. These brokers offer some of the most powerful trading platforms available for a reasonable price. Judging a broker’s trading platform by the number of features it offers is like buying a car based solely on what you read in the dealer brochure. While all investors have their must-have features, what’s more important is how the platform feels when it’s in their hands. The trading platforms at Ally Invest and TradeStation offer a wide variety of analytical tools, provide stable and speedy trade execution, and allow investors to customize the tools and design to best suit their needs. Unlike TradeStation, Ally Invest (formerly TradeKing) is technically a deep discount broker as reflected in its commissions (options traders pay a $4.95 base plus 65 cents per contract with only one base charge per spread), $0 account minimum and free access to research and data. Frequent traders (those who place 30 or more trades per quarter or who carry a balance of $100,000 or more) pay a discounted $3.95 base and 50 cents per contract. But don’t be fooled by the lower prices: Customers get a lot of platform power for free. Ally is suitable for newer options investors. The browser-based platform resembles the offerings of its pricier competitors and comes with free options trading tools for screening and advanced charting. Navigation is easy and streamlined. Customers can create a custom dashboard with movable modules with the data and features they want to use. The setup extends to what users see across all devices, including mobile and tablet. TradeStation is best left to more experienced, tech-savvy investors who want to experience options trading using the same tools as pro traders.

The broker provides all the tools needed to design, test-drive, monitor, automate and speedily execute the most complex trades via direct-market access (no pesky middleman to slow down the process). Its OptionsStation Pro platform is fully integrated into TradeStation’s regular trading platform. An added bonus is the broker’s active investor forums, where traders discuss ideas, ask questions and get help. Access to all of TradeStation’s bells and whistles used to come at a steep $99.95 monthly platform fee for those who didn’t meet account balance or trading activity minimums. But in March 2017 TradeStation eliminated the service fee, lowered its trade commissions for stocks and options and tossed in free real-time market data and free access to its market-monitoring and portfolio-level back-testing tools. Educational tools and platform tutorials are plentiful, which is a plus: Because of the sophisticated nature of the platform, it may require some time to become familiar with all that it offers. See more in our TradeStation review. Best research and options trading education. Both offer extensive research and data for free, as well as live classes and webinars for beginning and advanced options traders. If you’re new to options trading or want to expand your trading strategies, a broker that devotes its resources to research and customer education is a must. Because Schwab and Fidelity each have offices across the country in addition to their online options education libraries, they’re able to offer in-person guidance and free seminars on how to trade options, as well as one-on-one guidance on using the tools each platform offers. Fidelity’s constantly refreshed library draws from more than 20 providers, including Recognia, Ned Davis, S&P Capital IQ and McLean Capital Management. The full suite is available to customers when they sign into the broker’s web-based platform.

And you don’t have to stop digging when you’re away from your computer: Fidelity has a strong mobile app that lets customers access the company’s full suite of research through a mobile browser. Charles Schwab’s options trading capabilities and lineup of trading data and research got a big boost as the company integrated its purchase of OptionsXpress. In October Schwab re-launched its online platform under the StreetSmart name, with both web-based and mobile functionality, though for now only former OptionsXpress clients have access to the new platform. In the first quarter of 2018, Schwab will begin rolling out the new platform to all clients. While the platform name is changing, Schwab still provides a fully realized suite of offerings for options traders, including trade assessment tools, customizable screeners, access to Schwab analyst options-market commentary, live online webinars and pre-recorded seminars. Best brokers for beginner options investors. These brokers provide ideal conditions (educational resources, user-friendly platforms, customer support and low minimums) for investors just learning the options trading ropes. TD Ameritrade — one of our top overall brokers — ranked highest in this category, too. But since there are many types of beginners with many different preferences, instead of highlighting the category champions we’ve focused on brokers that are excellent candidates in three key areas: Low minimum opening balance requirements. Ally Invest, TD Ameritrade, Merrill Edge: If you’re not yet ready to devote a lot of your capital to options trading, you don’t want to tie up much in an account to meet the minimum. Many of the brokers on our list require no money to open an account. However, industry regulations require that traders maintain a $2,000 minimum to trade options.

Strong customer support. Scottrade and TD Ameritrade: On-call help is particularly handy when starting out. One way to test a broker’s level of service is to contact the company with any questions you have about its option trading offerings before you even open an account. Scottrade is known for its standout customer service and huge physical presence of 500 branches. So is TD Ameritrade, with around-the-clock phone and email support and 100 branches where clients can attend seminars and meet with investment associates. At the end of 2017, TD’s acquisition of Scottrade will be complete, increasing each broker’s ability to serve clients. User-friendly platforms. Ally, Charles Schwab and TD Ameritrade: There’s nothing better than test-driving a broker’s platform before you commit. Check to see if the broker you’re considering offers paper trading (virtual trading on a platform that mimics the real deal) or contact customer service to see if they will set you up with a demo account. As for brokers discussed in this review, Ally Invest’s browser-based platform is intuitive and easy to customize. And both Charles Schwab and TD Ameritrade have multiple platforms customers can use to start learning the ropes, then graduate to more sophisticated tools and trades if desired.

Best options trading brokers: summary. Updated June 30, 2017. Disclaimer: NerdWallet has entered into referral and advertising arrangements with certain broker-dealers under which we receive compensation (in the form of flat fees per qualifying action) when you click on links to our partner broker-dealers andor submit an application or get approved for a brokerage account. At times, we may receive incentives (such as an increase in the flat fee) depending on how many users click on links to the broker-dealer and complete a qualifying action. How To Buy Gold Options. Buy gold options to attain a position in gold for less capital than buying physical gold or gold futures. Gold options are available in the U. S. through the Chicago Mercantile Exchange (CME), so if you've wondered how to invest in gold, here's a shorter-term and less capital intensive way to do it. How to Invest in Gold: Calls and Puts. Use options to profit whether gold prices rise or fall. Believe the price of gold will rise? Buy a gold call option. A call option gives the right, but not the obligation, to buy gold at a specific price for a certain amount of time (expiry). The price you can buy gold at is called the strike price.

If the price of gold rises above your strike price before the option expires, you make a profit. If the price of gold is below your strike price at expiry, you lose what you paid for the option, called the premium. (For more on how to decide which call or put option to use, see " Which Vertical Option Spread Should You Use? ") Put options give the right, but not the obligation, to sell gold at a specific price (strike price) for a certain amount of time. If the price of gold falls below the strike price, you reap a profit of the difference between the strike price and current gold price (approximately). If the price of gold is above your strike price at expiry, your option is worthless and you lose the premium you paid for the option. It is not necessary to hold your option till expiry. Sell it at any time to lock in a profit or minimize a loss. Gold Options Specifications. Gold options are cleared through the CME, trading under the symbol OG. The value of the options is tied to the price of gold futures, which also trade on the CME. 40 strike prices are offered, in $5 increments above the below the the current gold price. The further the strike price from the current gold price, the cheaper the premium paid for the option, but the less chance there is that the option will be profitable before expiry.

There are more than 20 expiry times to choose from, ranging from short-term to long-term. Each option contract controls 100 ounces of gold. If the cost of an option is $12, then the amount paid for the option is $12 x 100 = $1200. Buying a gold futures contract which controls 100 ounces requires $7,150 in initial margin. Buying physical gold requires the full cash outlay for each ounce purchased. To buy gold options traders need a margin brokerage account which allows trading in futures and options, provided by Interactive Brokers, TD Ameritrade and others. Gold options prices and volume data are found in the Quotes section of the CME website, or through the trading platform provided by an options broker. Calls and puts allow traders a less capital intensive way to profit from gold uptrends or downtrends respectively. If the option expires worthless, the amount paid (premium) for the option is lost risk is limited to this cost. Trading gold options requires a margin brokerage account with access to options. Options On Gold And Silver ETFs. The advent of the exchange-traded fund (ETF) has ushered in a new era for investors. In the old days, if an investor wanted a portfolio of small cap stocks or large cap stocks or growth or value plays, the only choice was to identify a basket of stocks that appeared to fit the desired criteria and to buy as many of those stocks as one's capital would allow.

Likewise, individuals who wanted to trade currencies and physical commodities had little choice but to venture into the realm of futures trading. Today, via the purchase of the proper ETF, an investor can gain exposure to investments in a wide variety of investment vehicles and "styles". In fact, a vast array of commodity products can now be traded as easily as one would buy or sell an individual stock. Two of the most heavily traded metals market ETFs are SPDR Gold Trust and iShares Silver Trust (in this article, we will be using their prices from 2008-2009 as examples.) Both of these ETFs are designed to track the price of the underlying precious metal in their names. GLD tracks the price of gold bullion (divided by a factor of 10). SLV tracks the actual price per ounce of silver bullion. In other words, if gold bullion is trading at a spot price of $800 an ounce then we can expect GLD to be trading at approximately $80 a share, like it did in 2008-2009. Likewise, if silver bullion is trading at $12 an ounce, we can expect SLV to be trading at approximately $12 a share. So a bullish investor who wanted to hold a long position in gold could buy 100 shares of GLD for $8,000 (100 x $80). A bullish investor who wanted to hold a long position in silver could buy 100 shares of SLV for $1,200 (100 x $12). For most investors this is a much simpler process than buying the physical metal (which involves additional storage and insurance costs) or buying futures contracts. (To learn more, see The Gold Showdown: ETFs Versus Futures .) A Quick Primer on Options on ETFs. Option trading strategies open up a wide array of possibilities for traders.

The primary advantages to trading options is that doing so can allow a trader to enter into a bullish, bearish or neutral position (i. e., positions that make money when the underlying security remains in a particular price range) depending on a given trader's market outlook. Option trading also offers traders the potential opportunity to speculate on price direction at a fraction of the cost of buying the underlying security itself. (For a background on options, see our Options Basics Tutorials .) The primary risk associated with buying call or put options is that they have a limited life and an expiration date, after which they cease to exist. If the underlying security fails to move in the anticipated direction prior to option expiration, it is possible that an option that you purchased may expire worthless or the method that you are using may run out of time to reach its objective. Playing a Rise in the Price of Gold Using Call Options. The most direct play with which to take advantage of a decline in the price of SLV would be simply to sell short 100 shares of SLV at $12.77 a share. This would however, involve putting up and maintaining the required amount of margin money and would also expose a trader to unlimited risk on the upside if silver suddenly rocketed higher. A less expensive and far less risky alternative would be to buy an at-the-money put option. Figure 5 shows that at the time of the SLV price breakdown, the July 13 put option was trading at $1.75 per contract. Because each contract is worth 100 shares of the underlying security, a trader would pay a "premium" of $175 to buy one July 13 put option. At the time of purchase, this option has 130 days left until expiration so by spending $175 to purchase this option, the buyer has the right to sell 100 shares of SLV at a price of $13 a share at anytime during the next 130 days, regardless of how far SLV may fall. Figure 6 displays the risk curves for this trade. The breakeven price for this trade is equal to the strike price plus the premium paid.

So for this trade, the breakeven price is equal to $93.10 (strike price of $88 plus $5.10 premium). In other words, if this trade is held until expiration and GLD is below $93.10 then this trade will lose money. If GLD is above $93.10 then this trade will make money. But remember, the trade does not have to be held until expiration. A trader could simply to sell the option if it rises in price rather than exercising it and buying the underlying shares. Playing a Decline in the Price of Silver Using Put Options. The most direct play with which to take advantage of a decline in the price of SLV would be simply to sell short 100 shares of SLV at $12.77 a share. This would however, involve putting up and maintaining the required amount of margin money and would also expose a trader to unlimited risk on the upside if silver suddenly rocketed higher. A less expensive and far less risky alternative would be to buy an at-the-money put option. Figure 5 shows that, at the time of the SLV price breakdown, the July 13 put option was trading at $1.75 per contract. Since each contract is worth 100 shares of the underlying security, a trader would pay a premium of $175 to buy one July 13 put option. This premium represents the maximum amount that the option trader would risk on the trade.

At the time of purchase this option has 130 days left until expiration. So in sum, by spending $175 to purchase this option, the buyer has the right to sell 100 shares of SLV at a price of $13 a share at anytime during the next 130 days, regardless of how far SLV may fall in the meantime. Figure 6 displays the risk curves for this trade. The breakeven price for a long put trade is equal to the strike price minus the premium paid (in this instance $11.25 or a strike price of $13 minus $1.75 premium). If this trade is held until expiration and SLV is above $11.25, then this trade will lose money. If it falls below $11.25 then this trade will make money. (For a look at short selling, see Finding Short Candidates With Technical Analysis .) Top 7 Best Futures Brokers for Futures Trading | 2017 Ranking | Best Futures Trading Platforms. 2017 RANKING & REVIEWS. TOP RANKING BEST FUTURES BROKERS. Intro &ndash 2017 Review of the Best Futures Brokers for Futures Trading.

Identifying the top futures trading site or best futures broker can be a daunting undertaking, especially due to the wide-ranging landscape of the futures and commodity sectors. In addition, comparing the many different features offered by various futures brokers can add considerably to your challenge in finding the top futures broker that can best meet your needs. Essential Features to Look for When Searching for a Top Futures Broker. Some key features to consider when searching for the best futures broker to meet your futures trading needs include: Extremely fast trade execution An easy-to-use interface A transparent fee structure Low &ldquoper contract&rdquo commission fees 247 trading capabilities A highly advanced mobile app Cutting-edge technological platform Access to futures exchanges across the world. So, based on the wide-ranging spectrum of futures trading platforms and futures broker fees, how are you supposed to find time to conduct the detailed comparison research needed to identify the best futures brokers for futures trading? Well, that&rsquos where AdvisoryHQ comes in. Award Emblem: Top 7 Best Futures Brokers for Futures Trading. AdvisoryHQ's List of the Top 7 Best Futures Brokers. List is sorted alphabetically (click any of the names below to go directly to the detailed review section for that futures broker) Top 7 Best Futures Brokers | Brief Comparison & Ranking. Min. Deposit to Open Account. $1.50 per contract Futures fees & NFA fees apply.

Simple fee structure: $0.59 commission for all trades. $10,000 for individual accounts, $5,000 for advisor and broker clients, $3,000 for age 25 and under. Fixed plan: $0.85 per contract Tiered plan: $0.25&ndash0.85 per contract, based on monthly trading volume. MB Trading (TradeKing) 1&ndash250 monthly contracts: $0.85 per contract 251&ndash2000: $0.65 per contract >2000: $0.45 per contract. $3.50 fee per contract. $2.25 fee per contract. $1.20 fee per side (bundled). For unbundled fees, please see monthly rates below: Table: Top 7 Best Futures Brokers | Above list is sorted alphabetically. Although some futures trading firms might require $0 to open an account, they&rsquore still required to follow the requirements stipulated by most futures trading exchanges where futures are traded. As such, although you might see a $0 account opening requirement, note that you&rsquoll need to deposit $2000 in a margin account before you can trade most products. In addition to the fees listed above, each futures trading firm also charges fees that need to be paid to the futures trading exchanges and also to the National Futures Association (NFA). The NFA is the self-regulatory organization for the U. S. derivatives industry, including on-exchange traded futures.

NFA regulatory fees are assessed as having a current average of $0.01 per side. Click the link below for a sample list of the futures trading fees charged by the respective futures exchanges. Generating This Year&rsquos List of Best Futures Trading Platforms. How did AdvisoryHQ determine this year&rsquos list of the top futures trading brokers? In finalizing the list of top futures brokers and best futures trading platforms presented below, the AdvisoryHQ research team started out with a much larger list of over 56 trading platforms. The team reviewed TD Ameritrade, E*TRADE, Interactive Brokers, MB Trading, Lightspeed, optionsXpress, TradeStation, Generic Trade, TradeMonster, Advantage Futures, CannonTrading, AMP Futures Trading Supercenter, Daniels Trading, NinjaTrader, and other futures brokerages. We applied rating scores based on various selection criteria, including: Trading commission Account fees Analytical tools Simulators Tradable markets Access to global futures exchanges Fast execution Popularity & consumer reviews Level of customer support Ease of use Promotions Selection of investment products Highly graphical charts Reporting. In the process, we narrowed the list down to the 7 best futures brokers presented in this review publication. For more information on our selection methodology, see the section below. AdvisoryHQ&rsquos Selection Methodology.

What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top-rated lists? Please click here &ldquoAdvisoryHQ&rsquos Ranking Methodologies&rdquo for a detailed review of AdvisoryHQ&rsquos selection methodologies for ranking top-rated credit cards, financial accounts, firms, products, and services. Detailed Review &ndash Top Ranking Best Futures Brokers. Below, please find a detailed review of each stock broker on our list of best futures brokers. We have highlighted some of the factors that allowed these top futures brokers to score so high in our selection ranking. E*TRADE is proud of having conducted the first-ever electronic trade by an individual investor over 30 years ago, and they have been a leading futures trading firm ever since. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank E*TRADE as one of the top futures trading brokers. The benefits of using E*TRADE, one of the best futures trading platforms, include: Trade more than 200 futures products Advanced trading tools Flat, low commissions Get professional insights & advice Easy-to-use trading tools Live order status from order placement through confirmation Experienced futures support team available for assistance Reduced margin requirements by 50% per futures contract $1.50 per contract, no matter how often you trade. Futures Trading Firm Process. E*TRADE is well-known as a top rated online stock trading platform. In addition to this high rating, it is also one of the top firms on our best futures brokers list.

E*TRADE provides highly advanced futures trading tools that allow you to trade over 200 futures trading products. You are provided with a live order status from the order placement through confirmation. E*TRADE has a highly-experienced futures support team on standby for any questions or assistance you may need. The platform offers you the ability to directly access every major futures market in the world. Accessibility & Informational Tools. Access all of your accounts, positions, and streaming quotes on one page (stocks, options, futures, etc.). E*TRADE offers a 25% day trading margin for indexes, currencies, and treasuries. Customer service is available 247 (call, Internet chat or email). As one of the top futures brokers, E*TRADE is dedicated to empowering investors to make smart financial decisions while using futures trading exchanges. On the firm&rsquos website, you can find top-quality educational content, including analytical and research tools.

Generic Trade applies a &ldquosimplicity approach&rdquo to futures trading, which is a refreshing difference from the complex futures trading rate structure, based on volume or account size, which you would find with other futures brokers. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank Generic Trade as one of the top futures trading brokers. This online futures broker is a true deep discount futures firm, charging only 59¢ commission for all trades (futures or options on futures). Additionally, Generic Trade offers the lowest possible margins allowed by futures exchanges, and it offers aggressive day trading margins as well. Impressive Range of Features. Based on the factors listed below, Generic Trade is rated as one of the &ldquotop best&rdquo futures brokers of the year. Highly advanced trading platform Blazing-fast execution speed Top reliability & functionality Cutting-edge & innovative trading infrastructure High-level safeguards & security 24-hour support Highly transparent fee disclosure structure Instantaneous combined futures account information Free real-time charts Trade markets around the globe Low cost + advanced trading capabilities = great value ​ Interactive Brokers Review. Interactive Brokers provides two simple low-cost plans (fixed and tiered plan pricing) for trading futures and futures options. The firm&rsquos advanced trading applications provide specialized futures, like trading tools and a US futures market scanner. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank Interactive Brokers as one of the top futures trading brokers. At Interactive Brokers, futures trading margins are based on risk-based algorithms. You can quickly gain market insight by using Interactive Brokers&rsquo futures arbitrage and interest rates tables.

Using Interactive Brokers&rsquo futures platform, you can trade a wide range of futures products, including agriculture, currency, energy, equity index, fixed-income, metals, and volatility futures. With Interactive Brokers&rsquo platform, you can trade futures, futures options, and commodities across over 100 global financial markets. As an integrated tool, the platform enables you to trade futures and futures options in combination with stocks, ETFs, and options worldwide, all from a single screen. In 2015, MB Trading was acquired by TradeKing, extending the investment product services available to both sets of investors. Now offered by TradeKing, MB Trading offers first-class futures trading exchanges at low cost to investos, making it one of the top futures brokers in 2017. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank MB Trading as one of the top futures trading brokers. Competitive Pricing Structure. As one of the top futures brokers, MB Trading offers a competitive pricing structure for those interested in future trading. Their pricing structure includes: Trade at least 2,001 contracts and pay $0.45 per contract plus exchange and other fees Trade 251&ndash2000 contracts a month and pay $0.65 per contract plus exchange and other fees Trade 1&ndash250 contracts a month and pay $0.85 per contract plus exchange and other fees.

Connect directly to the CME, NYMEX, CBOT, and COMEX exchanges with MD Trading&rsquos MBTX proprietary order routing and get the best available prices and venues to execute futures orders. With the acquisition by TradeKing, MD Trading offers a wide variety of futures order types, including Stop Limit, Stop Market, Market+TTO, Stop+TTO, and more. Futures account types serviced by MD Trading include individual, trust, custodial accounts, foreign classification, and more. Owned by Charles Schwab, optionsXpress is one of this year&rsquos most highly rated top futures trading platforms. Year after year, optionsXpress has been considered a &ldquobest futures broker&rdquo by numerous review journals and publications . In 2017, the popular financial publication NerdWallet ranked optionsXpress as a top futures trading firm with 4.55 stars. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank optionsXpress as one of the top futures trading brokers. Effective Trading Platform. With optionsXpress, you can trade around the clock (247) and react to market-moving news and events day or night. Using optionsXpress&rsquos desktop or mobile futures trading platform, you can execute your ideas anywhere, with access to exchanges and products across the globe. For investors who are new to futures trading–or who simply want to learn a little more about the process–optionsXpress provides valuable educational tools and resources.

Investors can access free webinars, method papers, and newsletters. With advanced orders, you can automatically lock in gains or help protect against losses with contingent orderstrailing stops No broker assistance fees Advanced trading futures tools allow you to get fast and accurate electronic executions in some of the world&rsquos most liquid markets Choose from dozens of technical studies to create fully customizable streaming charts Power browser-based tools or advanced mobile trading tools Receive real-time Dow Jones news and daily research insights. With over 40 years of experience, TD Ameritrade has been a leader among the best futures trading platforms. With TD Ameritrade's thinkorswim trading platform, you get a completely integrated set of tools that allows you to trade futures, options, stocks, fixed assets, and a wide range of investing products. Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank TD Ameritrade as one of the top futures trading brokers. Competitive Pricing Structure. TD Ameritrade futures trading fees (futures & options on futures) are $2.25 per contract. Exchange and regulatory fees are added afterwards, with fees depending on exchange and product. This transparent pricing structure includes commission and regulatory fees, creating hassle-free future trading. Unlike other futures trading firms, TD Ameritrade does not charge subscription fees for studies and insights, including insights from futures trading experts such as John Carter and John Person. Powerful Trading Platforms. With TD Ameritrade apps, like Mobile Trader, you can trade futures directly from your mobile device. Ranked as the #1 trading app in 2016, Mobile Trader is one of the best futures trading platforms available.

You can also paper trade with TD Ameritrade&rsquos paperMoney, download customized charts, and get live market news from CNBC. TD Ameritrade's thinkorswim futures trading platform is a top performing derivatives trading platform designed for serious futures traders. Get 247 customer service support and free education seminars and resources (speak to a trading specialist anytime). TD Ameritrade offers pairs trading integration, access to live futures pit audio, free futures trading platform support, and interactive education, such as weekly webcasts, online courses, and live workshops. Over the years, TradeStation has won numerous awards and accolades from Investor&rsquos Business Daily , Barron&rsquos , and other top publications as well as the award of best futures trading broker. With TradeStation's future trading platform, you get direct access to every US futures exchange, as well as Eurex and NYSE Liffe London products. ( Update : We&rsquove received a few notifications in which users have complained that they were not able to trade on every futures market as promised by TradeStation.) Key Factors That Led to Our Ranking of This as One of the Best Futures Brokers. Below, please find a list of the features that enabled us to rank TradeStation as one of the top futures trading brokers. Advanced Futures Trading Platform.

TradeStation's futures trading platform provides more data, speed, and analytical power than even the most advanced futures traders&rsquo demands. With the advanced futures trading platform offered through TradeStation, traders have the ability to create, back-test, optimize, and fully customize their trading strategies. See below for additional features that allowed TradeStation to rank as one of this year&rsquos top performing futures brokers for trading futures. Automate your trading &ndash automate virtually any futures trading method with EasyLanguage Backtest strategies with decades of custom, continuous contract data Trade futures with one-click trading directly from charts, the matrix, and more Futures trading fees: $1.20 per side, per contract for futures options and futures contract Unbundled monthly contract futures fees: 25¢ to $1.20 per side, per contract (<300 contracts: $1.20, 301&ndash1000 contracts: $1.00, 1001&ndash10,000 contracts: $0.65, 10,001&ndash20,000 contracts: $0.45, >20,000 contracts: $0.25) Scan all futures markets in one window Get lightning-fast executions of your orders Advance platform comes with advanced trade opportunity scanning Exchanges include CBOT, CFE, CME, EUREX, EURONEXT LIFFE, ICE, KCBT, NYMEX COMEX, and NYSE LIFFE U. S. _. Conclusion: How Did We Select the Best Futures Brokers for Future Trading? When professional futures traders conduct research to find the best futures trading site to meet their needs, they normally consider the seven variables below to determine the futures trading platform or online futures broker that fits their trading and investing requirements the best. When conducting our research to perform a futures trading platform comparison and review, which are presented in this article, we integrated the seven factors below as part of our due diligence methodology. While our review of the top futures brokers provides valuable information for investors looking for top futures trading brokers and the best futures trading platforms, you may want to do your own research. Take a look at the chart below to see these seven factors to ensure that you can find the best futures trading platforms for your future trading investments. ​Although AdvisoryHQ's research and editorial team cannot recommend the best futures broker for you , we believe that the futures trading platform comparison reviews presented in this article will go a long way in helping you make your decision. When searching for the best futures trading software, you&rsquoll need to consider the fee (commission) per contract. The commission will be charged &ldquoper side&rdquo (buyingselling the contract) and will vary according to which online futures trading platform you trade with and sometimes according to your account balance. You&rsquoll need to consider the total in fees when selecting a futures trading broker to meet your needs.

The total in fees will include commission and NFA (National Futures Association) and exchange fees. Exchange fees vary according to what the contract is for and the party you are trading with. In addition to fees, you&rsquoll also want to select a top futures broker that provides advanced computational capabilities for fast execution. When markets go into rapid overdrive (i. e., a major surge or plunge based on breaking news), slow execution could result in tremendous losses. Analysis Tools and Trading Platform. Other factors you&rsquoll want to consider before selecting one of these best brokers for your futures trading needs is a broker that provides advanced research, analytics, and trading tools. Trading can be stressful enough. If you have questions or concerns that need answering, you want fast access to friendly and well-experienced support. The trading firms on our top futures brokers list are all renowned for having quality customer service. Ease of use is another top factor for ranking a top futures trading platform. A platform won&rsquot be highly effective if it is too complicated or nonintuitive.

As part of our futures brokers commission comparison, we focused on the best futures trading platforms that provided the most efficient user interfaces. Lastly, conducting futures trading platform reviews require an extensive review of intangible elements. Such elements include the legitimacy and reputation of the broker, promotions, and any awardsaccolades received. Reasonable efforts have been made to present accurate information, however all info is presented without warranty. Review AdvisoryHQ&rsquos Terms for details. Also review each firm&rsquos site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be our affiliates. Click to view our advertiser disclosures. LATEST RELATED ARTICLES. Top 6 Best Forex Brokers & Trading Sites | 2017 Ranking & Reviews | Best Forex Trading Platforms. Top 6 Best Online Stock Brokers (Ranking of the Top Discount Brokerage Firms) Top 6 Best Options Trading Platforms. Top 6 Best Online Trading Platforms | 2017 Ranking | Best Online Trading Sites & Top Trading Platforms.

Top 5 Best Forex Brokers – UK | Ranking | Top UK Forex Broker Trading Platforms. Top 6 Best Discount Brokers | 2017 Ranking | Best Discount Brokerage Firms for Trading Accounts. Top 6 Best Futures Trading Brokers (2017 Trading Platform Reviews) Top 5 Best Penny Stock Brokers | 2017 Ranking | Best Penny Stock Trading Platforms for Penny Trading. Follow AdvisoryHQ On: Copyright © 2016-2017. AdvisoryHQ (All Rights Reserved)