Education Futures & Forex - Commodities, Futures, Forex and Cash Metals Brokers (2024)

FAQs

What is the best broker for trading futures? ›

While futures trading offers the allure of standardized contracts and the ability to hedge against price fluctuations, forex trading boasts of unparalleled liquidity and the thrill of 24/7 trading. Both avenues, however, come with their own set of opportunities, challenges, and intricacies.

Many commodity traders earn a bachelor's degree in business, finance or a related field. Some high-level traders may earn a Master's in Business Administration to further advance their knowledge of the market.

Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC. The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.

This can be a risky form of trading, but it also has the potential to generate large profits. If you are starting with a small amount of capital, such as $10 to $100, it is still possible to make money on futures trading.

Futures Trader Salary. $57,500 is the 25th percentile. Salaries below this are outliers. $181,000 is the 75th percentile.

Leverage. Forex futures often provide equal or greater leverage than spot FX. Leverage allows for potentially greater profits but also increased risk. Always trade leveraged futures with a risk management plan in place.

An account minimum of $1,500 (required for margin accounts.) A minimum net liquidation value (NLV) of $25,000 to trade futures in an IRA. Only SEP, Roth, Traditional, and Rollover IRAs are eligible for futures trading.

Online trading has decreased broker commissions for commodity traders. Even a mediocre trader can earn up to $87,000 per year with enough business. Top tier traders have both excellent sales and trading skills. These traders can earn six- or seven-figure incomes each year.

Do commodities brokers make a lot of money? ›

The estimated total pay for a Commodities Broker is $185,859 per year in the United States area, with an average salary of $89,057 per year.

The salaries of Commodities Traders in The US range from $73,918 to $762,812, and the average is $166,453.

Trading commodities for a living is a dream of many aspiring traders, but only a small number of people can make this a reality. Although it is a difficult process, there are several things you can and must do in order to make this a profitable and lasting venture.

How to Get a Commodity Broker License. To work as a commodity broker, you are required to be certified by the National Futures Association (NFA). The NFA oversees licensing for stockbrokers and commodity brokers. Typically, you study for the licensing exam while working in an entry-level position or internship.

What is the lowest futures commission broker? Some of the brokers with the lowest futures contract commissions include NinjaTrader ($0), Ally Invest ($0 standard accounts) and TradeStation ($0.50). Many others advertise commissions as low as $0.65 per contract.

George Soros: The Master of Crisis Trading

George Soros's reputation as one of the richest futures traders is rivaled only by his prowess in crisis situations. His strategic market plays are not only legendary for their impact but have also contributed massively to his wealth.