If you have decided to start investing, your next step will be choosing a futures trading broker to handle your investments for you. Brokers have the ability to trade on the exchanges. If you are wondering if you actually need one, the answer is yes and this article will help you understand why.
There is a difference between a futures trading broker and a futures trading advisor. Most brokers do not advise clients on their trades, they follow your instructions on what to buy or sell and earn their money from commissions on the transaction.
There are two different types of futures trading brokers. A discount firm will usually charge a low, flat-rate commission per transaction. They are generally for experienced traders who understand the investing process because discount firms won't offer all the bells and whistles of a full service company.
New traders may benefit from starting with a full service firm because they will offer you help through their knowledge and experience. The full service futures trading broker has the drawback of charging a fairly high commission rate for the added service and remember that just because they have experience doesn't guarantee that they will recommend any profitable trades. A futures trading advisor is more likely to do that, but don't forget that you are ultimately responsible for your own account and learn as much as you can.
Finding a futures trading broker isn't hard, as many can be found with a search on the internet. The hardest part is deciding which one to go with. Remember that you can change companies and transfer your funds, should you decide to try another one. Also if you are new to trading, please consider beginning with a full service firm until you feel comfortable trading on your own and then switch to a discount firm.