Selecting the best future Broker is a key to your financial success when investing in future trading. By having numerous options in the market, making the right decisions being a newbie can be daunting that may disturb the growth cycle. 

But fear not; this article is a guide for all beginners to develop an understanding of the market and future exchange that will help them to gain insights into the basic concepts. While implementing, they can identify the drawbacks and hit upon the strategy to derive promising results. So, hang tight; let’s get started. 

Future Trading

Future trading is a dynamic financial activity that permits individuals and businesses to participate in the speculative or hedging aspects of the global markets. At its core, it covers buying or selling contracts that obligate the parties involved to transact a specific asset, such as commodities, currencies, or financial instruments, at a predetermined price and date in the future.

Who is a Future Broker? 

A future broker is a licensed and regulated financial entity that facilitates trading contracts on behalf of clients. They are authorized to provide access to markets, execute trades, manage client accounts, and offer multiple related services. 

Responsibilities

Well, there are plenty of duties a broker has to fulfill. Basically, they wear many hats to ensure your trading journey is smooth and successful. 

First and foremost, they help the client to execute buy and sell orders efficiently. You simply give them your trading instructions, and they immediately make it happen since they are working for you.

But that’s not all. They provide access to various futures exchanges where these deals are traded. This means you can choose a wide array of markets and assets to trade, including energy commodities like oil and gas, metals like gold and silver, and even stock indices like the S&P 500. You get an unlimited opportunity to explore different trading solutions and choose a domain that suits you perfectly. 

Beyond all things, a broker keeps abreast of the latest happenings in the market and keeps you informed of his decisions. You can make better choices and seize potential trading opportunities by staying up-to-date with market trends, economic news, and technical analysis.

Let’s talk about Risk Management, another crucial aspect handled by agents. The risk margin is always there in the trading industry, and you can’t bear huge losses. From explaining margin requirements like the funds you need to deposit to trade futures to help you set appropriate stop-loss levels, you get complete guidance to protect your capital and manage your positions efficiently. 

Moreover, the administrative side of trading also needs to be taken care of. Because you have to clear the settlement process, ensuring the trades are appropriately registered, and funds and assets are transferred securely. 

Are future brokers necessary for trading? 

Now, you may be wondering, is a future broker so important? To be honest, their importance can’t be overstated. The exchange deals are concerned with financial investments, and having a trusted and balanced intermediary by your side is crucial. An intermediary confirms that your trades are executed fairly and transparently. He offers reliable trading platforms and cutting-edge tools, empowering you to deal proactively. 

Remember, the agent you hired is your advocate, who always looks for your best interests. He works diligently to provide top-notch customer support, promptly addressing your concerns and queries. So, whether you’re a seasoned trader or doing it for a while, you need him to trade effectively. 

Best Future Trading Platforms for Traders.

As of now, these are the best platforms that a trader can choose to kickstart the trading career in 2023. 

1. CME Globex
2. E*TRADE
3. Interactive Brokers 
4. NinjaTrader
5. Thinkorswim
6. TradeStation
7. Bloomberg Terminal
8. MetaTrader 
9. X_TRADER Pro
10. Sierra Chart

Factors to consider when selecting a future broker for your trading journey. 

When hiring a broker, remember that the following factors are pivotal in empowering you to earn vast sums of money. 

Regulatory Compliance: You cannot take risks since it’s all about your financial career. No risks can be appreciated. Therefore, the agent you select must be licensed by the authorities in your region. This will help you remain in a legal cover and operate within boundaries adhering to industry standards.

Broker’s Reputation: Now, we must find an agent with a successful previous track record with multiple customer reviews to ensure the person you are looking for is competent and skilled. The best way to do this is by checking online reviews, ratings, and feedback from other traders to assess. Moreover, you can visit his profile and achievements on LinkedIn to find what you want.  

Trading Platforms: This is a top feature of brokers. The platforms they operate on must be technologically advanced and reliable that don’t lag, and give their users the best experience in the industry. The more it is user-friendly and stable, the more you enjoy trading on it. Consider features like real-time data, charting capabilities, and order execution speed before locking the deal. 

Cost and Fee Structure: After selecting the platforms and confirming the agents’ credibility, you will compare the commission rates, transaction fees, and other associated charges. A broker that caters to the needs of contemporary day traders should offer $500 margins on liquid mini contracts and $50 margins on liquid micros.

Remember, you choose the service to earn a considerable profit, not paying them all the money you will make. The price tags of tools and service charges must not be expensive at all. Additionally, you can calculate the overall cost structure to see whether it aligns with your strategy. 

Customer Support: Customer support is responsible for keeping up with the customers and resolving their concerns. As there can be various issues that a client may face amid trading. So, don’t rush the process; keep it simple and find the best availability of customer support. 

Nowadays, advanced support systems also offer help through phone calls, email, live chat with the agent, and AI chatbots operating 24/7 without any delay.  Whenever you need help, simply contact the support center and tell them your issue and within the given period of time, your problems get solved. 

Conclusion

As a beginner trader, it may be a bumpy ride for you initially, but as soon as you start learning the concepts and step forward towards practical things become easier for you. Go through the mentioned information and expand your trading knowledge.