RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

How do you choose a commodity brokerage firm? When you are ready to make an investment in commodity futures, the broker you choose is just as important as the markets you trade.

Finding a firm with the lowest commission rate should not be the first thing on your check list. Although low rates are appealing, remember the old adage “you get what you pay for”. Even if you are an independent trader, making your own decisions and placing all of your orders online, you should do your due diligence to make sure your funds are held at a substantial firm. Go to the firm’s website to find out how long the firm you are considering has been in business. You can also go to www.nfa.com and www.cftc.com to find out if there have been any major disciplinary issues. If you find a listing that raises an eyebrow, call and speak to a firm representative to obtain more details.

After you have formed a solid comfort level with the firm, look at the services available to you. Research, Market Analysis, webinars, etc. What do you have to pay for, and what are you really getting for free?

Another important factor to consider is what order platforms are available? Do you have to pay for the order platform? Be aware of deep discount firms with hidden costs.

Overall, longevity, experience, and knowledge of the firm and their staff can be the most important factors to look at, and can be the reason that firm will be around for many years to come.

888-861-1584312-373-4991Series 3 Licensed

Laura Taylor

Senior Market Strategist
Laura began her career in the financial industry in 1981. In 1985 Laura and some former colleagues developed and organized a new IB division at Index Futures Group. With a partner, she named the division (Brokers Resource Corp.), developed the client base and supervised a staff that serviced guaranteed and non-guaranteed IBs located across the country. She developed the in-house procedures manual and conducted on-site compliance audits. I was also one of the original co-founders of the National IB Association (NIBA) and hosted the very first NIBA conference in Chicago. After Index Futures Group sold their IB division Laura stayed on to manage the new accounts department as vice president of operations and then became their director of compliance. In 1996, as part of ED&F Man, Laura decided to venture into a new role in the commodity industry by putting her AP license to work by developing a client base as a commodities broker. Laura joined RJO Futures in 2011 where she enjoys being a senior commodities broker assisting clients with their trading decisions, the execution of their trades and specializing in automated trading for newsletter and hotline subscribers.
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