Choosing the right futures broker is crucial for traders looking to minimize costs and maximize profits. The broker you select can have a significant impact on your overall experience and long-term success when trading futures contracts. In this article, we evaluate the 10 best futures brokers with the lowest commissions to help you find the right fit for your needs.
Introduction
When reviewing futures brokers, commission rates are a key factor but not the only one to consider. You also need to look at the trading platforms, tools, research capabilities, product range, customer service and account options before deciding on a broker. However, costs and fees remain vital considerations for active futures traders. Lower commissions allow you to retain more of your profits over time.
This list includes some of the most reputable and well-established online brokers that offer competitive commission structures for futures trading. We have highlighted firms catering to various types of market participants - from casual investors to professional traders. Whether you are looking for advanced trading capabilities or easy-to-use platforms, you should find a suitable low-cost broker option on this list.
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Interactive Brokers
Overview
Interactive Brokers (IBKR) is one of the largest electronic brokerages in the world, catering primarily to experienced futures traders and professional investors. The firm is regulated in multiple jurisdictions globally.
Features
Pros
Cons
Interactive Brokers offers an institutional-quality trading experience for active futures traders. However, the complexity may be overkill for less experienced investors.
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Lightspeed Trading
Overview
Lightspeed Trading focuses on providing an optimized trading environment for active stock, options and futures traders through fast order execution and advanced trading tools.
Features
Pros
Cons
For traders seeking high performance futures trading capabilities, Lightspeed delivers well. But less active traders may find better options elsewhere.
TD Ameritrade
Overview
TD Ameritrade is one of the largest online brokers, catering to a wide range of investors from beginners to active futures traders.
Features
Pros
Cons
TD Ameritrade hits the sweet spot between features, pricing and usability across all traders levels. However, advanced futures traders may prefer Lightspeed or Interactive Brokers.
ETRADE
Overview
ETRADE delivers easy-to-use online trading platforms alongside discounted futures commissions to investors.
Features
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Pros
Cons
ETRADE presents a great mainstream online brokerage for casual futures trading alongside other investments. But expect limitations for professional futures traders.
Ally Invest
Overview
Ally Invest focuses on low-cost online stock and futures trading alongside top-tier customer service and support.
Features
Pros
Cons
For cost-conscious futures traders, Ally Invest delivers zero-commission futures alongside great service. But expect limitations for professional futures trading needs.
Charles Schwab
Overview
Charles Schwab provides active traders and mainstream investors discounted futures trading, research tools and an excellent trading platform.
Features
Pros
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Cons
For most futures traders, Charles Schwab presents a great combination of low-cost futures trading, platforms and tools. Expect some limitations for professionals.
Fidelity Investments
Overview
Fidelity is among the largest brokerages catering to mainstream investors alongside active traders with discounted futures commissions.
Features
Pros
Cons
For long-term investors trading some futures, Fidelity is a great fit. But expect some limitations for advanced futures traders.
TradeStation
Overview
TradeStation specializes in active equities and futures trading, providing advanced trading platforms alongside discounted futures commissions.
Features
Pros
Cons
For serious futures traders seeking advanced trading tools, TradeStation delivers well. But the platform complexity isn't ideal for casual traders.
tastyworks
Overview
tastyworks caters towards experienced futures and options traders with low-cost pricing, an easy-to-use trading platform and great service.
Features
Pros
Cons
tastyworks hits a sweet spot for active futures traders between capability and simplicity. But casual traders may prefer a more mainstream broker.
NinjaTrader
Overview
NinjaTrader provides active futures traders with discounted commissions, advanced trading platforms and a large suite of trading tools.
Features
Pros
Cons
For dedicated futures traders focused on costs, NinjaTrader is tough to beat. Expect a learning curve and limitations beyond futures trading.
Conclusion
Finding the right futures broker comes down to carefully evaluating costs, platforms, tools and account options against your needs and trading style. Outlining exactly what you expect from a broker narrows the choices substantially.
As highlighted in our list, platforms and capabilities can vary significantly between mainstream, casual trader-focused brokers and professional futures trading specialists. Matching your needs and priorities to the broker strengths and specialties provided here allows you to find your ideal low-cost online futures broker fit.
FAQs
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.
Should I care what futures broker I use?
Yes. The right futures broker for your trading needs and style allows you to maximize profits over the long-term by minimizing costs in commissions, margin rates, data fees and platform capabilities.
What futures broker is best for beginners?
Brokers like TD Ameritrade and ETRADE are great futures broker options for beginners. They combine easy-to-use platforms, fantastic education, research tools and discounted futures commissions.
Is Interactive Brokers good for futures trading?
Interactive Brokers offers a highly sophisticated futures trading platform with very low costs. However, less experienced traders may struggle with the complexity and lack of support.
What professional futures traders use?
Experienced professional futures traders gravitate towards specialty brokers like Lightspeed Trading, NinjaTrader and TradeStation that emphasize advanced trading tools and direct market access suited for active market participation. Mainstream brokers have limitations in capabilities, commissions and margin rates.
Risk disclosure: Information on the Page is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit.
Disclaimer: Page shall not be liable for the consequences of trading decisions made by the Client and for the possible loss of his capital resulting from the use of this website and information published on it. Page does not provide any financial services, including investment or financial advisory services. Also, the Page is not a broker and does not get money for trading in the Forex or CFD markets. Our Page only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.
