Best Brokers For Futures Trading
Futures are one of the most prominent financial instruments that makes sure to sell assets at a predetermined price and date in the future. All parties involved in the financial agreement are obliged to buy and sell the underlying asset at the set price without taking into account the market price at the expiration date. Hence, they act somewhat like an insurance for financial assets, thus the majority of traders are willing to get their hands on futures. However, in order to succeed in this task, it is essential to look for reliable and high-class Forex brokers. In this article, we would like to focus solely on those brokerage companies that provide the best features for futures trading extracted through investfox.com analytical tools:
Exness is one of the best Forex brokers when it comes to futures trading as it operated at high levels ever since its release in 2008. First things first, the safety of brokerage first is the number one priority regardless of your intentions, so you have to pay attention to this aspect. Exness is authorized and regulated by a total of 7 jurisdictions, including The Financial Services Authority in Seychelles (FSA), Central Bank of Curaçao and Sint Maarten (CBCS), the Financial Services Commission in BVI (FSC), the Financial Services Commission (FSC) in Mauritius, the Financial Sector Conduct Authority (FSCA) in South Africa, the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the United Kingdom.
Therefore, we are dealing with a completely trustworthy broker where there are top-tier regulators as well as second and third-tier companies. What’s more, Exness offers negative balance protection to users, meaning that you won’t be able to lose more money than is available on your balance. Also, by keeping customers’ funds in segregated accounts, Exness allows them to withdraw money in case the broker itself goes bankrupt. All in all, your rights and funds will be protected maximally by this broker.
ActivTrades is one of the oldest Forex brokers launched back in 2001 and as of today, it is available in more than 140 countries. The tremendous popularity of ActivTrades is induced by several factors, but mainly because it offers more than 1,100 tradable instruments from various asset classes such as Forex pairs, indices, commodities, ETFs, and over 1,000 Stock CFDs. Trading CFDs come with great benefits in terms of high liquidity and low fees. ActivTrades provides a total of 50 Forex pairs, including major, minor, and exotic ones. When it comes to stocks, the broker lets you take advantage of US, UK, and European stock CFDs, but keep in mind that additional fees might apply for leveraged stock CFD trading.
With ActivTrades, you can trade a lot of indices including GER40, UK100, USA500, USAID, USATEC, etc… What’s more, spreads for trading indices start from as low as 0.23 pips here. Commodities are also one of the most prominent financial instruments, and you will come across a total of 18 commodities and commodity futures, such as: COCOA, COPPER, NGAS, DIESEL, CORN, COTTON, and several others here. Lastly, ActivTrades offers a wide range of crypto CFDs, including: BTC/USD, ETH/USD, LTC/USD, BCH/USD, DOT/USD, EOS/USD, etc…
Oanda is another famous Forex broker operating at high levels for several years. If you wish to trade futures with this broker, we have to note that it provides an array of trading accounts for this particular reason. So, you have a chance to opt for those accounts that best suit your trading style and preferences. You will come across a total of 3 account types on this broker - standard, core, and swap-free accounts. Generally, standard accounts are convenient for all types of traders, especially novice traders. Oanda offers $0 as commission and the spread markup is 1 pip. Base currencies for standard accounts are USD, EUR, HKD, and SGD, and there are more than 200 instruments and a 50% stop-out level.
As for core accounts, it is usually useful for high-frequency traders, Intraday, short-term traders, and Algorithmic traders. This is because spread markup is only $0.2, but keep in mind that there’s a $40 commission per million dollars traded. Swap-free accounts are the same as Islamic accounts in order to give Muslim traders the opportunity to trade. So, they don’t charge interest for holding open positions overnight. However, this account comes with several downsides as well, for instance, spreads start from 1.6 pips, the commission is $0, and the Leverage is 200:1. What’s more, the broker offers demo accounts to novice traders in order to learn everything about trading without spending real money.
Last but not least, the Forex broker on our list is called XM which offers a perfect environment for futures trading. Apart from high-quality features, you will come across the industry’s leading trading softwares on this broker such as MetaTrader 4 and MetaTrader 5. These are the most popular platforms in the whole Forex market, so it should come as no surprise that XM implemented them. MT 4 consists of many beneficial features - over 1000 financial instruments such as Forex, Cryptocurrencies, CFDs, and Futures, 1 single login access to 8 platforms, and spreads as low as 0.6 pips. What’s more, it comes with technical analysis tools comprising a total of 50 charting tools and indicators, and a full expert advisor functionality. Installing MT 4 is a very easy process as it only takes a couple of minutes, and it is accessible with all types of operating systems.
As for MT 5, it is an upgraded version of the previous product that comes with more complex features. So, it is generally recommended to expert traders rather than newbies. Also, there are additional 1000 CFDs on stock, making it the ideal multi-asset platform. All in all, there is everything on this broker that you need in order to execute futures trading.