Guide to Futures Exchanges

Work with full-service futures exchange brokers

If you're new to the futures exchanges, consider going with a full-service domestic futures exchange brokerage firm. It can introduce you to the various exchanges. Most of these brokerage firms trade in multi-markets, including the foreign futures exchange markets. Don't be deceived by the term "full service" to mean high commissions; in fact, many offer deep-discount flat commission rates. What you'll gain the most is the firm's broker for advising you of investment decisions.

I recommend: Look at ClearTrade Commodities, which offers low commissions. If you want to know about the commodity exchange, ClearTrade’s brokers have had real experience trading on the commodity trading floor. You’ll also want to check with ProActive Futures, which works with traders and institutions.

Trade on the foreign futures exchange with a flexible trading software or platform

You want to ensure that your platform can trade on foreign futures exchange and foreign option exchange markets. One option you want to have with the trading software is the ability to simulate trades. As in life, markets tend to have patterns. You want to test historical data and see results on the charts. This helps you make better decisions whether to go long or short.

I recommend: See TradeStation Securities’ website for its product, TradeStation. You’ll also want to consider RazorTrader; find it on IBD Direct, LLC's website. With RazorTrader, you can employ trading tactics, including trailing stops and stop limits. RazorTrader enables you to execute trades on ICE and EUREX, among other futures exchanges.

Educate yourself continuously on future exchanges

It doesn't hurt to keep up on trends and information in the futures exchanges. The futures market is dynamic. Futures exchanges can merge or collaborate with other exchanges. For example, the New York Stock Exchange and Euronext merged to create NYSE Euronext, making it the first transcontinental futures and options exchange. You'll want to stay on top of global option trading statistics. If you're trading options globally, you need to know about global option trading statistics.

I recommend: Check the individual futures exchanges' websites often. Although there are many more futures exchanges, look at the Chicago Mercantile Exchange and the Intercontinental Exchange. Take a look at NYSE Euronext's website. All three websites offer valuable educational information on futures. It's crucial that you stay on top of these exchanges, especially regarding mergers or partnerships.