Hello everyone, This is my first post here although I have been lurking for quite some time. I am looking to begin trading index futures after a lengthly time paper trading(over 1 year), developing an edge, and cementing other aspects such as profit and loss management with a mentor. What I do need is some advice on choosing a broker that will fit my needs. I have narrowed it down after about 1 month of due diligence to 3 brokers: Interactive Brokers Tradestation OpenECry Initially I'll be finding the account with 30,000. I'll be looking to trade no more than 2 contracts at a time maximum (2 because my strategies involve scaling in and out) so margin isn't a great concern but fair pricing and reliability are major concerns. Reliability is one thing I cannot find true facts about on these brokers web pages. Would someone with experience using any of these brokers please comment concerning the above? Thanks Allot!
Many pros/cons for each. But I would go with IB. For no other reason than IB is as dependable for execution as the other two with comparable commish and better interest paid on your balance. IMO IB is a better _broker_ Not as good as the other two as in charting or cust service. You may consider adding Sierra Chart/Quotetracker/Ensign and Buttontrader/Zerolinetrader/Ninjatrader for charting and front end support. I strongly suggest you read/view the webinars on IB's site. Big resource help that will make your life easier. 95% of IB problems can be dealt with if you learn about how it works first. 5% are real so prepare for them when they happen.
Seems like you are on the right track! I have experience with Interactive brokers and Trade station. Interactive brokers is well with me, they are a good broker. But they do have policies that change by the minute it seems. They do offer ACH even if you just trade futures so that's nice. Tradestation is the champ as far as charting is concerned, I have had the futures platform die on me twice in the last six months though. So I can't give them too much credit as far as reliability is concerned. Trying to access the trade desk was a nightmare on those two days. I am actually looking at OpenECry as a back up broker myself, they seem like a solid firm. Good Luck!
TS w/ IB as backup for me. TS doesn't clear their own futures, they are an introducing broker for RJ Obrien. With TS/RJO account, your account is not insured. IB sweeps your futures cash into the SIPC/Lloyds insured account. So something to consider if that's a concern. Also w/ TS futures account, you can only trade futures. IB's universal account may be useful if you're considering anything outside of futures. Try them both out. TS charting and platform is best imo.
Nope, you won't find a brokerage that's 100% reliable 24/7. They all have their own share of problems. The best thing to do is to have a primary account with your favorite brokerage, and an emergency back up account with a different brokerage. But if you do use IB, then be prepared to look into 3rd party trading platforms, and charting packages. IB is very weak on the software side. And if your strategy depends on true tick by tick data, then you can pretty much forget IB's data feed. You could of course subscribe to a data vendor. And if you're strictly trading US e-minis, then there are better choices than IB. I'm not bashing IB, I've been with them for over 2 years now, and I'm very satisfied. If you're planning to trade the Asian, and European markets also, then IB can't be beat. Good luck, Schaefer
Thanks for the responses. What other brokers do you suggest for strictly emini trading? That SPIC issue is interesting, although in the event of a complete collapse situation I may be in a rough spot even with SPIC protection. Tradeststion seems to be first in line so far, My only concern is that they seem to nickel and dime you for data. With OE there is no charge for data etc. but their software obviously cannot compare to TS
Well, that explains why they have no ACH functionality for futures accounts....but they do have it for stocks/options.