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Tag: Futures Trading Brokers

Understanding Commodity Brokers, Futures Brokers, and Forex Brokers

Posted on by Cannon Operations

Learn more about commodity brokers at Cannon Trading Company here.

In the world of financial markets, traders rely on intermediaries known as brokers to facilitate their transactions and provide access to various assets and trading instruments. Commodity brokers, futures brokers, and forex brokers are key players in this ecosystem, each specializing in a specific type of trading. In this comprehensive guide, we will explore the roles of these brokers, highlight the differences between experienced and inexperienced futures brokers, compare futures brokers to commodity brokers and forex brokers, and delve into the exceptional services provided by Cannon Trading Company.

Commodity Brokers

Commodity brokers are professionals who facilitate trading in a wide range of physical commodities, such as agricultural products (grains, livestock), energy resources (crude oil, natural gas), and precious metals (gold, silver). They act as intermediaries between traders and the commodity exchanges where these products are bought and sold.

Services of Commodity Brokers:

  • Providing market information and analysis related to various commodities.
  • Facilitating the execution of buy and sell orders for commodities.
  • Assisting clients in managing risk through hedging strategies.
  • Offering insights into supply and demand dynamics that impact commodity prices.

Futures Broker

Futures brokers specialize in facilitating transactions involving futures contracts. Futures contracts are standardized agreements to buy or sell a specific quantity of an underlying asset at a predetermined price on a future date. These contracts are widely used for speculation, hedging, and risk management.

Differences Between Experienced and Inexperienced Futures Brokers:

  • Market Knowledge: Experienced futures brokers possess in-depth knowledge of the markets they serve, including factors influencing price movements. Inexperienced brokers might lack this expertise.
  • Risk Management: Skilled futures brokers help clients develop effective risk management strategies, such as setting stop-loss orders and position limits. Inexperienced brokers might overlook these critical aspects.
  • Execution Speed: Experienced brokers offer fast and efficient order execution, reducing the impact of slippage. Inexperienced brokers might struggle with timely execution.
  • Customer Support: Established brokers provide comprehensive customer support, addressing queries and concerns promptly. Inexperienced brokers might lack the resources to offer reliable support.

Forex Brokers

Forex brokers, also known as FX brokers or foreign exchange brokers, facilitate trading in the foreign exchange market. This market involves the exchange of currencies, where traders speculate on the price movements of one currency relative to another.

Services of Forex Brokers:

  • Offering access to a wide range of currency pairs for trading.
  • Providing trading platforms with real-time quotes, charting tools, and technical indicators.
  • Facilitating leveraged trading, allowing traders to control larger positions with a smaller amount of capital.
  • Offering different types of accounts suited to the needs of various traders.

Comparing Futures Brokers, Commodity Brokers, and Forex Brokers

  1. Asset Focus:
  • Futures Brokers: Specialize in facilitating futures contracts trading across various asset classes, including commodities, indices, and interest rates.
  • Commodity Brokers: Focus on facilitating trading in physical commodities and related derivatives.
  • Forex Brokers: Primarily cater to forex trading, allowing traders to speculate on currency exchange rate fluctuations.
  1. Trading Instruments:
  • Futures Brokers: Facilitate trading in standardized futures contracts based on commodities, financial indices, and other assets.
  • Commodity Brokers: Enable trading in physical commodities like agricultural products, energy resources, and metals.
  • Forex Brokers: Offer trading in currency pairs, allowing traders to profit from fluctuations in exchange rates
  1. Risk and Volatility:
  • Futures Brokers: Futures trading can involve significant leverage, leading to potential high profits or losses. Markets can be volatile.
  • Commodity Brokers: The prices of physical commodities are subject to supply and demand dynamics, as well as geopolitical events.
  • Forex Brokers: Forex markets can be highly volatile, with exchange rates influenced by economic indicators, geopolitical events, and central bank decisions.

Cannon Trading Company: Exceptional Customer Service and TrustPilot Rating

Cannon Trading Company stands out as a reputable brokerage firm that offers services in futures trading. Their commitment to providing outstanding customer service, along with their exceptional TrustPilot rating, underscores their dedication to the success and satisfaction of their clients.

  • Customer Service Excellence: Cannon Trading Company’s team of experienced brokers provides personalized support, market insights, and trading strategies to clients. Their expertise assists traders in making informed decisions and navigating the complexities of futures markets.
  • TrustPilot Rating: The brokerage firm boasts a remarkable TrustPilot rating of 4.9 out of 5 stars, demonstrating their consistent ability to meet and exceed customer expectations. This rating signifies the positive experiences clients have had with Cannon Trading Company’s services.

Commodity brokers, futures brokers, and forex brokers play distinct roles in facilitating trading in various financial markets. Futures brokers focus on futures contracts trading, commodity brokers specialize in facilitating commodity transactions, and forex brokers enable forex trading. The differences between experienced and inexperienced futures brokers emphasize the importance of knowledge, risk management, and customer support. Cannon Trading Company’s exceptional customer service and TrustPilot rating highlight the value of a brokerage partner that prioritizes client success and satisfaction, making them a top choice for futures traders.

Ready to start trading futures? Call 1(800)454-9572 and speak to one of our experienced, Series-3 licensed futures brokers and start your futures trading journey with Cannon Trading Company today.

Disclaimer – Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. 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 for April 22nd, 2021

Posted on by Ilan

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Dear Traders,
Today’s action in Silver, gold, SP and NQ lead me to write the quick piece below.
Few words on BREAKOUT trading.
The concept is one of many different traders use.
Some like to use COUNTRER TREND trading.
others look at ORDER FLOW, some will use support and resistance mainly and hopefully more traders will master a few different techniques and use the appropriate one depending on the type of trading day that is developing in front of their eyes.
The concept of break out trading looks for the market to “snap out” of a certain trading range and continue moving in that direction. The toughest part is to filter out the “fake breakouts” and recognize early enough which breakouts have the potential to be a powerful one.
A few tips to explore:
Look for a breakout on a smaller time frame that will coincide with a longer time frame CURRENT trend. So you may look at a daily trend and look for a breakout on the hourly chart?
You may trade smaller time frames and look for breakouts that will coincide with the 30 minute chart time frame.
Last but not least ( for today only of course as I am sure there are MUCH more than the short few pointers I am sharing….) try utilizing different type of charts and do your homework in regards to which breakouts seem to work better than others. Look at RANGE BAR charts, explore VOLUME charts, maybe even take a look at Renko bars and other types as well.
30 MINUTES chart of ES below with 4 different pointers to look at, marked A through D. CLICK for larger IMAGE. ALWAYS much easier to look back in hindsight and explain what happened….I wish it was that easier when trading live….Click on the chart so you are able to read the pointers along with some insight for educational purposes.
210421EP E Mini S%26P 500 Equalized Active 30 Min Continuation
To access a free trial to the ALGOS shown in the chart along with other tools? (Slanted arrows possible buy, diamonds = possible exit/ tighten stops) visit and sign up for a free trial for 21 days with real-time data.

Good Trading

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 when it comes to Futures Trading.

 

Futures Trading Levels

4-22-2021

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Economic Reports, source: 

 www.BetterTrader.co

 

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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.

Benefits of Trading Futures Online

Posted on by Ilan

Full-service walk-in brokerage firms have been the traditional institution trusted within the investment world. Currently, a new way of trading has been edging its way to the forefront – online futures trading. Trading online has provided many new possibilities for would-be investors, and in today’s day and age, there is almost a necessity to find more comprehensive, faster, real-time ways to interact within the commodities markets.

The internet puts any given market and its activity into electronic format, which gives investors quicker access to trading positions. Futures trading, particularly, is a type of trade in which an investor takes a position on a contract with a set price of an underlying commodity, and agrees to either buy or sell the underlying asset in raw or currency form at a set future date. Below is a comprehensive explanation of the specific benefits of trading futures contracts with these added benefits. By taking them into consideration with an investor’s knowledge of various markets, traders can put their strategies into context and take unique positions with their investments.

  • Reduced Commissions: Brokers put a tremendous amount of work into studying market trends, negotiating trades, and processing orders for clients, so it comes as no surprise that their invested time and effort costs the investor a great deal. By trading online, traders can cut commission costs by fifty to seventy-five percent. An investor can expect to pay out five to ten dollars per trade while trading futures online, as opposed to the forty to seventy dollars per trade with a full-service broker. There is also an option for broker assisted accounts in which an investor pays a slightly higher rate of fifteen to twenty dollars per trade with trading advice and broker suggestions. Either way, the savings over time are valuable.
  • Learning Curve: An investor can learn a great deal through online trading by taking more control in day to day decisions. Many brokers can assist a trader with the basics of futures trading, however the ability to take a more proactive approach to trading futures is an investor’s biggest asset. If an investor makes a bad trading decision, albeit costly, the decision can acclimate a trader to market temperaments and provide valuable experience as to the responsibility involved in reaching their trading goals.

Continue reading “Benefits of Trading Futures Online”

How Discount Brokers Work?

Posted on by Ilan

Discount Futures Brokerage is formatted to provide a more cost effective way of trading futures for experienced traders who are comfortable placing trades over the internet , using their personal computer..

Discount Futures Brokers typically offer lower service fees and take a more minimal role in daily trading decisions. What you are essentially using a broker since then, is to place orders and for representation on the exchange floor. It is true that futures trading, or any trading market for that matter, could not operate without market participants and market professionals representing those participants. With commodities markets being so risky, regardless of cost it is clear that qualified brokers are vital to the success of participants of various markets.

What’s The Difference?

The biggest difference with discount brokers is the client’s ability to be more self-directed with their trading profile. The risk associated with futures trading disclaims that there is no guarantee of profit no matter who manages your money. No matter the level of involvement, brokers still represent the interests of every client and are likewise as valuable.  The need for Futures Trading Brokers will never become obsolete, so the emphasis on discount brokerage need be on discounted commissions and fees, not discounted service.

Below is a list of lesser or excluded fees associated with a discount futures brokerage:

  • Account Maintenance Fees
  • Platform Fees
  • DataFeed Fees (Online/E-Trading)
  • Low Margin Investments
  • Broker Support Fees

Another difference with discount brokerage is the type of platform often used for this type of futures brokerage service; online. Online Futures Trading is in some cases synonymous with a discount futures brokerage. The reason this is, is due to lower costs associated with online platforms that allow you to do most of the monitoring of real time market data. A wide selection of online futures companies provide the software you can download to use to trade and build a profile. When one places orders online, he doesn’t need to call his broker and place orders via phone. That saves the time of the broker and allow for lower, discounted fees.

Continue reading “How Discount Brokers Work?”

5 Mistakes of Commodity Trading & Futures Levels & Economic Reports 12.05.2013

Posted on by Ilan

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday December 5, 2013

Hello Traders,

For 2013 I would like to wish all of you discipline and patience in your trading! 

5 Common Mistakes of Commodity Trading by Joe Easton Senior Commodity Broker with Cannon Trading

As a broker who serves different types of clients with different backgrounds, risk capital and risk appetite, I have observed the following 5 common mistakes traders make, in hopes you can learn and avoid!

  1. Trading with lagging indicators. As a Broker, I get to see the whole range, from traders making their first trade, to traders making their last trade, and everything in between. The beginner traders almost always start along the same path. Using MACD, Williams %R, Stochastic, RSI and most other indicators you can find to predict price is a very common mistake. These indicators often follow price movement, not predict future price movement. Sure when looking at a chart in hindsight, they match up great, but in real time they are lagging. This style of trading will more than likely lead to losses.
  2. Trading Undercapitalized. This mistake should be placed in the premarket (before opening an account) because an account shouldn’t even be opened without proper capitalization. Assuming you did open an account, trade within limits. Each Trader has different risk tolerance, but across the board, no one should be trading with funds they cannot afford to lose. When trading with limited funds or overleveraged 1 day can end your trading career before it began. Cannon offers aggressive day trading margins, as do our competitors, but by no means do we endorse taking advantage of all that leverage. In futures trading some markets are leveraged 100:1 or even more. Meaning you are controlling a lot more capital then you may think. For example: The ES is trading at 1695 right now. You are controlling 1695*50= $84,750.00 with a mere $500 or approximately 170:1 leverage. With all that leverage account balances can fluctuate rapidly. When Trader’s take losses psychology shifts, when a shift in psychology meets lack of funds or overleveraged trading decisions are affected. Trading on low balance or outside reasonable limits is a sure recipe for losses.
  3. Overtrading. This mistake is common among beginner and advanced traders. Until it is overcame, significant profits will be lost to commissions. More importantly, your trading profit potential will be limited. Whether trading 1 lot or 1000 lots per order there is still only so many moves a market can make in a given trading period. Intraday trading typically results in three moves or less. Sure there are days that bounce between the high and the low all day, but that is one move, sideways. Other days include trend days (one direction), or 3 move days, which I believe to be most common. A 3 move day is up then down (usually a retracement) then up, or down then up then down. A two move day would be up then down or down then up. If most days fall under these formats, what reason would a 1 lot trader have to make 100 trades? Not a good one, I’ll tell you that.
  4. Losing Days. About every Trader has losing days, it is part of the business. The key is to limit losses, similarly to trading. You should monitor your account balance like you monitor your trades. When you see it going the wrong way, you should become impatient and look to cut it short. There are infinite factors why you are having a losing day, the fact is you are and you need to know in advance where the bleeding stops. Many skilled and professional traders regularly take profits from the market day in and day out only to blow the account up the one day the market doesn’t react the way they expect. Often ego or anger can block rational thoughts and averaging in and reversing is all too easy. Having hard rules like maximum lot size and maximum daily loss can preserve your capital and prevent losing days from burying your account.
  5. Chasing the market. There are so many mistakes, it is hard to only choose five, but chasing the market will conclude this list. Markets do not move in straight lines. Aside from major news there are very few large moves without retracements. Depending on the market a “big” move can be calculated by taking the average daily range and multiplying by 2 or 3. Market conditions are constantly changing, but in all circumstances, when a market makes a big move, it is more likely to retrace or reverse before continuing. Traders that buy the ES after 15 points up or sell gold after a $50 move down are behind the ball and more times than not will be stopped out with a loss. Wait for the retracement or play the other side, this will help limit loses by chasing.

Continue reading “5 Mistakes of Commodity Trading & Futures Levels & Economic Reports 12.05.2013”

What to Look For When Comparing Futures Brokers

Posted on by Ilan

Great risks and great rewards are two of the main principles founded in trading. Since 1848, where resides the world’s oldest and largest functioning options exchange, individuals have made fortunes and lost companies, behind this fickle industry. In the futures market, these two linked together, can lead to greater success, but how? Firstly, let us look at the components of a futures market, and futures brokers. In short, the futures market can be compared to the stock market, but with a focus on the future rise or fall, particularly in commodity prices (the price of raw materials and primary products) such as:

  • Cocoa
  • Oil
  • Coffee
  • Gold
  • Copper
  • Wheat

To name a few…

The above aforementioned goods form what is considered to be the commodities market. Though Cocoa and wheat are considered soft commodities, and lumber oil and electricity are hard commodities, these both are secured by futures contracts, which entail physical assets. Futures broker diligently watches commodity markets, assesses two indicators, supply and demand. As a general rule, the determination of supply and demand, generally dictates the amount of money to allocate to a certain position in the commodities market. Once this position is held, the futures broker can predetermine the value of a commodity. Moreover, if the forecast was apt, you sell high and receive a larger profit, on the converse, a wrong forecast could lead to a loss of your initial risk capital. Losses in general, are hard to accept, however, without a great risk, yes the potential gain is greater, but we always have to calculate the loss.

When we talk about a loss in investment, inherently, it is a part of the mind, which is usually ignored. Accepting a loss, to survive in this industry requires fortitude and discipline. Why? The first instinct, when you lose money, is to double-down. Briefly, to double down depend mainly on if you see a future in the market that you are investing in, and if not, simply cut your losses. Consequently, with great uncertainty in the commodity markets, and a brief overview of this vast aspect of the financial sector, how can you choose a prudent, savvy, yet, sage futures broker?

Continue reading “What to Look For When Comparing Futures Brokers”

Trading Levels and Reports for June 27, 2012

Posted on by Ilan

Jump to a section in this post:

1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Wednesday June 27, 2012

Hello Traders,

I am in and out of the office over the next few days, hence there will be no commentary or charts.

Be disciplined, be patient and trade well!

Continue reading “Trading Levels and Reports for June 27, 2012”

Trading Levels and Reports for June 26, 2012

Posted on by Ilan

Jump to a section in this post:

1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Tuesday June 26, 2012

Hello Traders,

I am in and out of the office over the next few days, hence there will be no commentary or charts.

Be disciplined, be patient and trade well!

Continue reading “Trading Levels and Reports for June 26, 2012”

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.