Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!
A good piece, worth reading if you are in the stage of looking for a commodity broker for your new trading account or NOT happy with your current one and considering switching…..
How do futures traders go about selecting a futures broker they can be happy with?
By John Thorpe Senior Broker with Cannon Trading
A futures trader should find considerable comfort in doing business with a firm that is sound from a regulatory perspective. The Futures trader should ask for the regulatory history of both the firm and the Individual Registered Representative.
There would be a few red flags: 1) The firm is too new to have a history; 2) Several financial settlements in the past are assessed to the Firm; 3) Disciplinary actions have been taken against an Individual Registered Representative.
Another aspect that a firm should exhibit to a potential futures trading client is the availability of the Individual Registered Representative or the trading staff. Is the individual available while you have market risk? Is the Trading desk available while the markets are open?
Market knowledge of the Individual Registered Representative is another important reflection of the firm. What is the quality of the help provided by the firm? This does not mean possessing a crystal ball that will provide market direction changes on a dime, but rather product knowledge with respect to how the markets work, what trading platforms are the most suitable to employ given a particular trading style, and exhibiting a clear understanding of futures contract specifications, liquidity, and tendencies.
Price is ubiquitous and is representative of value. Just as the price of a particular commodity moves higher quickly due to a perception or real scarcity of the commodity, services are also priced in much the same way.
If you are a self-directed trader who trades a large number of contracts and is well versed in platform, contract specifications, and risk management, you will in all likelihood find value in trading platform and pay more for that as long as your commissions are inexpensive.
As a broker-assisted trader, your value proposition aligns more closely with a high-quality Registered Representative who will work for you in determining risk management strategies, order placement, appropriate markets to trade, and also offer time. These arrangements on a continuum will offer commission structures that vary widely. Make sure you know what trading platform you are getting, what the cost of the platform is, the level of engagement with the firm and Registered Representative, and the commensurate commission for each trade that you will be charged.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Futures Trading Levels
|Contract September 2017||SP500||Nasdaq100||Dow Jones||Mini Russell||Dollar Index|
|Contract||December Gold||Dec. Silver||Oct. Crude Oil||Dec. Bonds||Sept. Euro|
|Resistance 3||1356.9||18.23||50.43||158 7/32||1.1998|
|Resistance 2||1352.3||18.15||49.92||157 26/32||1.1978|
|Resistance 1||1345.6||18.05||49.53||157 2/32||1.1950|
|Support 1||1334.3||17.86||48.63||155 29/32||1.1902|
|Support 2||1329.7||17.78||48.12||155 16/32||1.1882|
|Support 3||1323.0||17.68||47.73||154 24/32||1.1854|
|Contract||Dec. Corn||Dec. Wheat||November Beans||Dec. SoyMeal||Oct. Nat Gas|
Economic Reports, source:
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.