Trading Futures Using an IRA account
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Utilizing Your IRA for Futures Trading through Futures Brokers
Learn more about trading futures using your IRA with Cannon Trading Company here.
Many individuals engaged in futures trading may not be aware of the possibility of conducting futures transactions within their IRA (Individual Retirement Account). Cannon Trading Company facilitates futures trading within your IRA, provided that your IRA is held with a qualified custodian that permits futures and commodity trading within IRA accounts.
When trading within your IRA, you can benefit from the traditional tax advantages that IRAs offer while gaining access to nontraditional markets, such as futures (consult a tax professional for guidance). These markets encompass a variety of futures and commodities, including energy markets like crude oil and heating oil, financial markets such as the 30-year bond and 10-year note, and even softs markets like cocoa and coffee futures, among many others. You can find a comprehensive list of the markets available for trading within your IRA account here:(https://www.e-futures.com/margin-requirements.php).
Before you embark on trading within your IRA account, there are several important considerations:
– Your IRA must fall under a qualified IRA type, which can include Traditional, Roth, Rollover, and SEP IRAs.
– Your IRA must be held with a custodian that permits futures trading within IRAs. Some of the custodians we collaborate with, who facilitate futures trading within IRAs, include Midland IRA, Millennium Trust Company, Equity Trust, and others. Please contact us for further information.
– You will have access to a wide array of futures markets, including currencies, energies, financials, grains, indices, meats, metals, and soft commodities.
– You have the option to select from multiple trading platforms to best suit your specific trading requirements.
– Trading futures options is also possible within your qualified IRA account.
– Standard day trading margins and initial margins apply to all IRA accounts, with no additional margin restrictions specific to IRAs.
It’s essential to recognize that trading futures within your IRA differs significantly from trading stocks and securities in a traditional IRA, which most investors are accustomed to. Notably, futures contracts have expiration dates and may require rollovers if held over an extended period, unlike traditional stocks and securities, which can be held long term without modifications or rollovers. There are numerous other distinctions between trading futures and commodities compared to stocks; feel free to reach out to us for further information.
It’s worth noting that while IRAs are traditionally a vehicle for retirement savings, futures trading is inherently more aggressive due to the substantial leverage involved. Each individual must carefully assess whether using IRA funds for futures trading aligns with their overall retirement strategy.
Should you have any inquiries concerning trading futures within your IRA account or need information about custodians that permit futures trading within IRAs, please don’t hesitate to contact Cannon Trading. Our licensed brokers are available to assist you in establishing the most suitable setup for your trading needs.
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.