Here you will find our best futures brokers, based on thousands of hours of extensive research, testing and analysis across hundreds of online futures brokers. Upon conclusion of each of our futures broker reviews, the trading brokers team has assigned each futures broker with a rating, and displayed our best futures brokers on this page.
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Some of the most important factors that contribute towards a good futures broker have been considered including the regulatory authority, futures trading platforms, trading instruments, trading tools, fees, spreads, execution speeds, account types, deposit/withdrawal options, leverage, minimum deposit requirement, educational resources, customer support and more.
Having the best futures brokers based on our findings listed in one place can help futures traders save time when identifying the best futures brokerages according to their own individual trading needs.
Each of the brokers we have chosen have undergone and passed our stringent futures broker reviews with flying colours, based on what the trading brokers team consider to be amongst some of the most important considerations. These futures brokers are well-established within the online brokerage industry, providing top futures trading services to future traders across the globe.
Following on from our best futures brokers list, we will now look at what futures contracts are and some of the most important factors to consider when looking for an online futures trading broker.
Futures are financial contracts that typically trade on an exchange in which two parties – one buyer and one seller – agree to exchange an underlying market for a fixed price at a future date (expiration date). One party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date.
The buyer in the futures contract is known as to hold a long position or simply long. The seller in the futures contracts is said to be having short position or simply short. The exchange acts as mediator and facilitator between the parties. In the beginning both the parties are required by the exchange to put beforehand a nominal account as part of contract known as the margin.
Many different commodities, currencies, and indexes are traded in futures, offering traders a wide array of products. Since futures contracts can be bought and re-sold any time the market is open up until the fulfilment date, they are a popular product among day traders. Futures can be used to hedge against risk or speculate the prices.
As an example, the futures contract size for gold is 100 ounces. Thus, if you are buying two gold future contracts, you are in control of 200 ounces of gold. If the price of gold increased by $1 an ounce, your position will change by $200 ($1 x 200 ounces). Each futures contract and commodity have their own unique characteristics.
To learn more about futures trading, please see our futures trading guide.
There are various factors worth considering if you are looking for a broker to trade futures online with. In this section, we will cover what we consider to be some of the most important aspects that you can look out for when choosing a futures broker.
We deem the brokers regulation to be of the upmost importance. The reason being, is that a regulated broker must follow strict rules and regulations put in place in order to protect investors. They can offer some forms of protection that an unregulated brokerage firm cannot. Many experts and professionals would only ever trade with a regulated broker and they can give clients peace of mind that the broker has their best interests in mind.
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. The asset can be tangible commodities such as grain, beef, corn, crude oil and metals. They can also be stocks, indices, commodities and currency pairs. Thus, if you would like to trade future contracts on a particular asset class, you will need to check that it is an available option at the broker you are considering.
When you trade future contracts with a broker, they are likely to charge a commission fee. It is important that you are aware of all fees involved before taking out any future contracts. Generally speaking, the lower a brokerage fees are, the more you can save on trading costs over the long term. Aside from the commission fee, there may be other fees which you need to be aware of such as accounting fees, inactivity fees and more.
In order for clients to be able to take out future contracts, the broker provides them with a futures trading platform. There are various desktop, web and mobile platforms available, some free and some paid. Each platform will have a choose of trading tools, features and functionalities. If you are already familiar with a specific trading platform, you may wish to check that the broker has it. Alternatively, you can opt for a popular and user-friendly futures platform such as MetaTrader or cTrader.
The futures markets typically use high leverage. Leverage means that the trader does not need to put up 100% of the contract’s value amount when entering into a trade. Instead, the broker would require an initial margin amount, which consists of a fraction of the total contract value.
For example, if you had an account balance of $500 and leverage of 1:5, you would be able to take a position size of $2,500 ($500 x 5 = $2,500).
Whilst this does mean that you can control a position size larger than you would have been able to without leverage, it also means the risk is significantly greater. It is imperative that you have a clear understanding of leverage and how it works before trading with leveraged positions.
The best futures brokers should have a selection of educational resources available to help traders improve their trading knowledge and skills. This can range from trading guides, tutorial videos, webinars, eBooks, quizzes and more. If you would like to learn more about futures trading, then you should check the broker has the relevant educational materials.
Whilst future trading platforms will have a range of built-in trading tools, some brokers provide traders with additional tools to help assist them with their daily trading activities. This can include economic calendars and earning reports which help clients to keep up to date with the latest market news and can be implemented as part of a fundamental analysis. Other tools can include trading calculators, trading signals, market alerts and more.
Each futures broker will have its own minimum deposit policy so check that you can meet this requirement. You may also need to provide some personal information in order to pass the brokers KYC and AML procedures. During the sign-up process it is very important to make sure that you read all of the brokers terms and conditions, only proceeding if you understand and agree with them.
Different brokers can have different account deposit and withdrawal methods. Whilst most future brokers will allow you to fund your account via wire transfer and credit/debit card, others will accept online payment methods such as Neteller, PayPal and Skrill. You may wish to check to make sure that the broker has an account funding option that is convenient for your needs. It is also important to check any broker or third-party fees that will occur when making deposits and withdrawals.
There are futures brokers all over the globe. Some may operate customer support in different time zones, via different methods and different languages. You may wish to check where the brokers’ offices are located and if they are easily reachable. Many brokers will offer online chat, telephone and email support. You can check they have a contact option that works for you.
Now that you have had a brief overview of what future contracts are, you may be considering opening an online trading account to trade futures online. To do so, you can simply choose a futures trading broker, follow the account opening process and you will be able to start trading futures online through one of their futures trading platforms.