i am looking for a future broker that can handle physical delivery, possibly carry-trade. Can anyone recommend some brokers for me to further investigate into. if you can just me a line or 2 why he is / isn't a good broker, that would be great. thanks
Try RJ O'Brien http://www.rjobrien.com/corp/index.php - one of the oldest firms on the block and I understand a founding member of CBOT. The are a behemoth broker, used them before.Good at execution but I stopped using them because of an archaic trading platform and rediculous margin rules/requirements. e.g If you placed a limit order they would deduct the margin from equity before order was even filled et.c Its been a while since I used them about 5years ago maybe they have improved now.
A firm will do that if you trade "too many" other markets at the same time and are at risk of being filled on too many other initiating orders at the same time thereby leaving you undermargined and subject to a margin call.
True - I understand, thats why I said its an archaic trading platform. A modern broker with more rigid real time risk control mearsures should automatically reject any order once an account is undermargined. Could the ordrers all be filled at the same time to the milli-second - yes but highly unlikely. In the event that happens the platform should close out the trades as an auto-liquidate trade.
i found cargill http://www.cargillag.com and ADM http://www.admis.com/TradingPlatforms.aspx i will give them an email and find out if they are good. thanks.
i got my reply from Cargill. for your infomation, Cargill's US grain business does not offer brokerage accounts. They buy grain direct from producers for physical delivery. i am still waiting for others for reply.
I know very little about the grain markets, but traded alot of energy for a large commercial where we took and made good delivery on a routine basis - power and hydrocarbons. Don't be surprised if a clearing firm asks you to post 'bona fides' - basically, a lien on your commercial assets. Of course, you'll also have to be able to provide physical off-loading and storage arrangements with the assigned counterparty.
R.J. O'Brien had this to say about me trying to profit from the current contango situation, they might as well have said there is no such thing as a free lunch: We do not permit physical delivery in Crude Oil & require all clients to be flat 1 business day prior to Last Trade Date, no exceptions. If anyone knows of a broker that will allow physical delivery let me know.