Exchange and regulatory fees are added afterwards, with fees depending on exchange and product. Trading can be stressful enough. Refer to the guidelines on our "Trading Commandments" before purchasing any futures options. It displays accounts alerts, trade notifications, and tools updates. We do not sell your information to third parties.
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In addition to the fees listed above, each futures trading firm also charges fees that need to be paid to the futures trading exchanges and also to the National Futures Association NFA. The NFA is the self-regulatory organization for the U. Click the link below for a sample list of the futures trading fees charged by the respective futures exchanges.
Best Futures Trading Platforms. We applied rating scores based on various selection criteria, including: In the process, we narrowed the list down to the 7 best futures brokers presented in this review publication. For more information on our selection methodology, see the section below.
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top-rated lists?
Wide Range of Benefits. Futures Trading Firm Process. In addition to this high rating, it is also one of the top firms on our best futures brokers list. You are provided with a live order status from the order placement through confirmation. The platform offers you the ability to directly access every major futures market in the world.
Access all of your accounts, positions, and streaming quotes on one page stocks, options, futures, etc. Additionally, Generic Trade offers the lowest possible margins allowed by futures exchanges, and it offers aggressive day trading margins as well. Impressive Range of Features.
Interactive Brokers provides two simple low-cost plans fixed and tiered plan pricing for trading futures and futures options. Below, please find a list of the features that enabled us to rank Interactive Brokers as one of the top futures trading brokers. At Interactive Brokers, futures trading margins are based on risk-based algorithms.
Today, the order type continues to thrive, as it is now customizable and available in mobile. Overall, the desktop version of Xtend is just okay. While it was very visually appealing, we found it to be sluggish speed-wise, and the charting was difficult to use, not to mention much weaker than charting available elsewhere. Another aspect of the Xtend desktop platform we did not particularly care for was the layout, which forces preset sizes and limited numbers of windows.
Tools can be popped out of the platform area, but in the end, it is a poor user experience. If there is one positive highlight, it is the trade ticket functionality, which we found to be a similar experience to the website. Speaking of the website, the tools and functionality here were much smoother.
Some tools, such as the Chart Patterns tool, are basic iterations of licensed third-party services, while others, such as Idea Hub, are more innovative and interesting. Idea Hub is a scanning tool that quickly breaks down potential trade ideas based on current market activity. All trade ideas can then be assessed with profit and loss charts alongside probability charts, then moved to a prefilled trade ticket for order entry.
The tool can also be found in all mobile apps. We also enjoyed the options analysis tools available. The Trade and Probability calculator whips up profit and loss charts alongside probability charts for any trades being considered. Similar to Idea Hub, the Strategy Scanner is another useful options tool that generates trade ideas based on market outlook, risk, and symbol. Although Charles Schwab owns and operates optionsXpress, the two brokers remain independent.
Use market pullbacks to support or resistance as opportunities to enter with the trend, by writing futures options which best fit into your objectives. Volatility is another important factor when determining which options on futures to write, it's generally better to sell over valued futures options then under valued futures options.
Remember not to get caught up with only volatility, because options on futures with high volatility could always get higher. The bottom line is, pick the general market direction to become successful over the long-term. We also believe in using stops based on futures settlements, not based on the value of the option. If a market settles above or below an area you believed it shouldn't and the trend appears to have reversed based on the charts, it's probably a good time to exit your positions.
We can help you understand the risks and rewards involved, as well as how to react to certain situations, i. We can either assist your option writing style or recommend trades and strategies we believe are appropriate, using the above guidelines. Most futures options expire worthless and out of the money, therefore most people lose when buying options on futures. Cannon Trading believes there is still opportunity in buying , but you must be very patient and selective.
We believe buying futures options just because a market is extremely high or low, known as "fishing for options" is a big mistake. Refer to the guidelines on our "Trading Commandments" before purchasing any futures options. Historic volatility, technical analysis, the trend and all other significant factors should all be analyzed to increase your probability of profit.
All full-service accounts will receive these studies, opinions and recommendations upon request. Cannon Trading Company's "Trading Commandments" can be used as a guideline to assist you in the process and decision making of selecting the right market and futures options to purchase. A common strategy we implement involves the writing and buying of futures options at the same time, known as bull call or bear put spreads.
Ratio and calendar spreads are also used and are recommended at times. Please do not hesitate to call for help with any of these strategies or explanations. Here are a few examples we use often: If coffee is trading at 84, we can buy 1 coffee call and write 2 calls with the same expiration dates and 30 days of time until expiration. This would be in anticipation of coffee trending higher, but not above in 30 days.
We'd be collecting the same amount of premium as we're buying, so even if coffee continued lower we'd lose nothing. Our highest profit would be attained at based on options on futures expiration. To determine risk we'd take the difference between and , which is 35 points and divide it by two, because we sold two calls for every one purchased.
You'd then add the Risk lies if coffee rises dramatically or settles over A typical calendar spread strategy we use often would be to write 1 option with about 25 days left until expiration and buy 1 with 60 days left. If coffee was trading at 84 and we thought prices might be heading slowly higher. We can write 1 coffee call with less time and buy 1 coffee call with more time in the anticipation that the market will trend higher, but not above the strike before the first options on futures expiration.
Some additional risk here lies in the difference between the two contract months.
Access futures trading and management tools, market insights, education and support from optionsXpress, part of The Charles Schwab Corporation. When professional futures traders conduct research to find the best futures trading site to meet their needs, they normally consider the seven variables below to determine the futures trading platform or online futures broker that fits their trading and investing requirements the best. Charles Schwab Corp. (SCHW) is taking its options trading service mobile, launching new web and mobile trading platforms under its OptionsXpress unit, which it acquired in for $1 billion.