Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Trading Futures Using an IRA account
Many futures traders do not know that you can trade futures in your IRA account (Individual Retirement Accounts). Cannon Trading Company allows trading in your IRA investment as long as your IRA is with a qualified custodian who allows futures and commodities trading with IRA accounts.
Trading with your IRA, you are able to enjoy traditional tax benefits your IRA provides while receiving access to nontraditional markets such as Futures ( please consult a tax professional). Just a few of the different Futures and Commodities markets you have access to are the energy markets such as crude oil and heating oil; financial markets such as the 30 yr bond and 10 yr note and even the softs markets such as cocoa and coffee futures and much more. Here is a complete list of the markets you are able to trade on your IRA account: https://www.e-futures.com/margin-requirements.php
Important things you must know before trading on your IRA account:
- Your IRA must be a qualified IRA Type including: Traditional, ROTH, Rollover and SEP
- Your IRA must be with a custodian who allow futures trading with IRAs. Just a few of the custodians we work with who allows futures trading with IRAs are Midland IRA, Millennium Trust Company, Equity Trust and much more. Please call us to inquire
- You will have access to all futures markets (Currencies, Energies, Financials, Grains, Indices, Meats, Metals & Softs)
- Choice to multiple platforms that suit your trading needs best
- You will be able to trade Futures Options in your qualified IRA account
- Standard day trading margins and initial margins are applied to all IRA accounts. No additional margin restrictions are applied to an IRA account
Please note that when trading futures in your IRA it is much different than trading stocks and securities in an IRA which most traditional investors are privy too. An important thing to note is that Futures contracts do expire and may need to be rolled over if position is held by the client over a period of time. Whereas traditional stocks and securities do not expire and can be held long term without having to modify or rollover the position. There are much more differences with trading futures and commodities compared to stocks. Please inquire with us to find out more.
One word of cautious, traditionally IRA are a vehicle for retirement savings, on the same token, futures trading is more aggressive in nature because of the larger inherent leverage. One must decide for oneself, if using the IRA funds to trade futures fits with their overall retirement strategy.
If you have any questions regarding trading futures on your IRA account or have any questions about custodians who allow futures trading on IRAs please contact us at Cannon Trading and speak to one of our licensed brokers who can assist you with finding the best set up for your trading needs.
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.