ICorpSecurities Review – Futures Trading [2022 Updated]
Did you know that the first stock was issued all the way back in the 1600s? And even though the stock is an ancient investment instrument, it’s not even close to the oldest ones. Real estate and gold are some of the oldest tradable asset classes, but commodities like grain and rice go generations back as well, though oil is a relatively new one.
However, modern commodities trading is nothing like it was in the good old days, and now, derivatives like futures have become an essential part of the market as well. And if that’s something you are interested in, ICorpSecurities would be a great place to start.
Futures Trading – What You Need To Know
Before we dive into why ICorpSecurities might be one of the best options for futures trading, it’s a good idea to look into what futures trading is.
Futures, in their basic form, are a contract/promise between a buyer of a commodity and a seller of a commodity to buy something at a specific rate at a specific time. For example, you might be able to buy futures of oil at £80 a barrel on the first of May, assuming that the oil price would be higher at that time. If it is, you will be in profit as you might sell the actual commodity at the higher market price. But you will lose money if it’s trading at a lower price on the first of May, but you still have to buy it at£80.
However, most retail investors that are looking to invest in the futures, potentially using ICorpSecurities, are not interested in the commodity at all. So they can buy the futures contract (which is liquid before the expiration date) and can offset the obligation to buy the actual commodity using another contract while still reaping the financial profit. It’s a way to speculate and bet on the market value of different commodities.
What Should You Look For In A Futures Broker?
Futures are relatively complex derivatives and thus, should be traded after understanding the market thoroughly. For many commodities, the market usually moves in a relatively predictable pattern. Still, in some instances, like during COVID, the price of commodities like oil can see a lot of volatility in a relatively short time. This is ideal for futures traders that can speculate and make money on both prices going up or down.
So if you are confident in your understanding of the futures as derivatives, the next step is to choose the right broker. Some traits you should look for are:
Low or no account minimums:
If you are only starting out with futures trading, you may not want to commit a sizeable sum to your futures trading account, so a no or low account minimum is important.
The commission you would need to pay for every trade may vary drastically from broker to broker. Some tie the amount to the size of a trade or the frequency of trading. Others have a fixed amount, like $0.50 per trade, which might not look much, but if you are executing 5,000 trades in a month, you will end up spending $2,500 on commissions alone. So, the lower, the better (usually).
Margins also differ drastically from broker to broker. Some futures trading platforms/brokerages are built specifically with day trading patterns and needs in mind and may offer more competitive margins. Others have low margins by default, while others may compensate for relatively higher margins with low commissions. So take everything else into account when assessing whether or not margins are coming out in your favor or not.
Nowadays, the technological prowess of an online broker is a crucial factor to look into. How fast are the trades updated, how quickly can you execute a contract, what tools and screeners are available to you, and what data analytics have been built into the system? Answers to these questions can help you make a smarter choice regarding your futures broker.
Simplicity and flexibility of the platform:
The downside of having too many tools at your disposal is that the platform can become overly cluttered and might offer more informationthan you were looking for. For such platforms, the flexibility to mold it to your needs is something you should look into.
Another powerful feature that can be quite attractive, especially to novice futures investors, is a free trial or a virtual trading option. Both can give you a feel for the broker before you actually commit to it.
ICorpSecurities – A Futures Broker Worth Looking Into
ICorpSecurities offers almost all the best traits you should look for in a futures broker and more. It comes with a huge library of useful resources, 24/7 support, and advanced features that can help you get the best out of the futures market. It’s a perfect tool for the right investor.
You can find out more about ICorpSecurities by visiting the website: https://icorpsecurities.com/