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Rated: HighTrading in futures and options carries substantial risk of loss, clients may lose more than their original investments and is not suitable for every investor. -
Rated: High70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. -
Rated: High73%-77% of retail investor accounts lose money when trading CFDs with this provider
The best futures trading brokers, according to our research, are:
- AvaTrade
- DEGIRO
- Interactive Brokers
- Plus500
- Fineco
- Saxo Bank
- eToro
- IG Markets
- Forex.com
- Coinbase
In choosing them, we considered the following factors:
- The overall quality of the broker
- The commissions charged by the broker on futures
- The ways of investing in futures offered by the broker
Summary
| Futures Brokers | Commission per contract |
|---|---|
| AvaFutures | $1.75 |
| DEGIRO | $0,75 |
| Interactive Brokers | $0,85 |
| Plus500 | $0,89 |
| Fineco | $0,95 |
| Saxo Bank | $6,00 |
| eToro | Variable spread |
| IG Markets | Variable spread |
| Forex.com | Variable spread |
| Coinbase | $0,07 (micro) |
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
What are the best futures trading brokers?
Below is our curated list and review of the best futures trading brokers, with details of features and characteristics.
AvaTrade
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Avg. EUR/USD Spread:
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaFutures is a brand owned by the international broker AvaTrade.
- AvaFutures offers futures trading on around 30 assets across different markets in collaboration with the CME Group.
- The futures markets offered by AvaFutures include bonds, cryptocurrencies, indices, commodities (oil and precious metals), and currencies.
- AvaFutures allows traders to buy micro, e-mini, and standard futures contracts.
- AvaFutures charges fees from $0.75 for micro futures contracts and $1.75 for e-mini and standard futures contracts.
- AvaFutures doesn’t charge fees per operation for deposits and withdrawals and provides a free futures trading platform (MT5) along with free Level 2 Data.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
DEGIRO
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Regulations:
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About DEGIRO
DEGIRO is a European online broker founded in 2008, whose CEO is Oliver Behrens. DEGIRO offers access to over 50 global exchanges for trading securities like stocks, ETFs, bonds, options and futures. DEGIRO offers low fee structures, user-friendly platforms, and a AFM regulated investing environment.
DEGIRO Features
The features of DEGIRO are listed below.
- DEGIRO is a European broker that allows you to trade futures.
- On DEGIRO you can trade futures on indices, stocks, commodities, and fixed income.
- Futures trading costs are €0.75 per contract on DEGIRO.
- DEGIRO offers many account types, but the only ones that support futures are the DEGIRO Active accounts and the DEGIRO Trader account.
DEGIRO Pros and Cons
Advantages of DEGIRO
The advantages of DEGIRO are listed below.
- User-Friendly Platform
- Low and Transparent Fees
- Wide Range of Investment Options
Disadvantages of DEGIRO
The disadvantages of DEGIRO are listed below.
- No Direct Cryptocurrency Trading
- Lack of a Demo Account
- Limited Educational Resources
Interactive Brokers
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About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- Interactive Brokers allows trading a large number of futures on over 30 North American, Asian, and European exchanges.
- IB offers a large number of futures on the crypto, forex, stock, and index markets.
- IB’s fees per futures contract decrease as volume increases.
- For U.S. futures, IB charges commissions per contract of $0.85, which decrease to $0.25 if more than 20,000 contracts are purchased per month.
- IB also offers a large number of e-mini futures, with commissions starting at US$0.10 per contract and increasing to US$0.25 as volume decreases.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
Plus500
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Avg. EUR/USD Spread:
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About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- On Plus500 you will be able to trade the most popular U.S. futures on the Futures account (U.S. exclusive).
- Plus500 offers Future contracts on: Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy, Equity Indices.
- US traders can trade futures on standard, e-mini and micro contracts.
- Plus500 commissions on futures start from $0.49 on micro contracts and from $0.89 on standard and E-mini contracts.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated Futures provider
- Wide range of Futures instruments
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Advanced technical analysis tools not available
- Doesn’t support automated trading options
- No Negative Balance Protection
Fineco
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About Fineco
Fineco is an Italian online bank and broker founded in 1999, offering trading services on stocks, ETFs, bonds, futures, options, forex, and CFDs. Fineco provides proprietary web and mobile trading platforms. Fineco is regulated by multiple authorities including Banca d’Italia and CONSOB. Fineco is known for its integrated banking and investing services, competitive pricing, and extensive product range. Fineco serves over 1.4 million clients primarily in Italy and the UK. The Fineco CEO is Alessandro Foti since 2000.
Fineco Features
The features of Fineco are listed below.
- On Fineco you will be able to trade IDEM, EUREX, and CME futures.
- Among them you will be able to trade futures on the US market and also the European market.
- On Fineco you will also be able to find e-mini futures so you can open trading positions with lower volumes.
- Commissions start at $0.95, and decrease as trading volumes increase: below €499 traded the commission is maximum, between €499 and €1,499 it is intermediate, and the minimum is obtained for volumes above €1,500.
- Fineco allows a margin of up to 1% to be used on futures.
Fineco Pros and Cons
Advantages of Fineco
The advantages of Fineco are listed below.
- No Minimum Deposit Requirement
- Competitive Trading Fees
- Diverse Range of Tradeable Assets
Disadvantages of Fineco
The disadvantages of Fineco are listed below.
- Lack of a Demo Account
- Limited Educational Resources
- Higher Spreads Compared to Competitors
Saxo
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Avg. EUR/USD Spread:
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About Saxo
Saxo is a Danish investment bank and online trading platform founded in 1992. Saxo offers trading in forex, stocks, CFDs, futures, options, and other financial instruments across global markets. Saxo provides proprietary trading platforms and white-label solutions for institutional clients. Saxo is regulated by multiple authorities including the Danish FSA and UK FCA. Saxo serves retail and institutional clients in over 170 countries. The Saxo CEO and co-founder is Kim Fournais.
Saxo Features
The features of Saxo are listed below.
- With Saxo Bank you can trade over 300 futures on more than 20 global exchanges.
- Commissions on Saxo Bank on futures vary by country of residence of the trader, by account type, and by trading volume.
- On the Saxo Bank Classic account, futures loads a $6/trade fee, while it is $3/trade fee on the Platinum account, and $1.25/trade fee on the VIP account.
- For those trading volumes above 5,000 contracts per month, pricing is customizable.
Saxo Pros and Cons
Advantages of Saxo
The advantages of Saxo are listed below.
- Regulation and Trust
- Extensive Product Range
- Advanced Trading Platform
Disadvantages of Saxo
The disadvantages of Saxo are listed below.
- High Minimum Deposits for Premium Accounts
- Lack of Spread Betting Options
- Custody Fees in Certain Regions
eToro
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About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- On eToro you can trade futures on commodities markets.
- Futures at eToro focus primarily on soft commodities, but there are also futures on metals and the energy sector.
- In total, you can trade over 10 different futures on eToro.
- eToro charges a spread on futures, and this means that the fees are variable, and change based on the state of the market.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
IG Markets
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- At IG Markets you can trade over 15 CFD futures on stocks, commodities and bonds.
- The only commission charged on futures by IG is the spread, which is not fixed but varies according to the state of the markets.
- Thanks to CFDs on futures, you can go both long and short with IG Markets.
- By trading Futures in CFDs, overnight fees will be charged at market close if the trade is left open.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Forex.com
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Avg. EUR/USD Spread:
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About Forex.com
FOREX.com is a global forex and CFD broker founded in 2001, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. FOREX.com provides proprietary platforms alongside MetaTrader 4 and 5. FOREX.com is regulated by multiple top-tier authorities including FCA, ASIC, and CFTC. FOREX.com is known for competitive spreads, fast execution, and extensive educational resources. FOREX.com serves over 450,000 clients worldwide. The FOREX.com’s parent company “StoneX Group Inc.” CEO is Sean O’Connor.
Forex.com Features
The features of Forex.com are listed below.
- Forex.com allows you to trade futures on over 10 different exchanges.
- Futures offered by Forex.com include the forex, crypto and commodities markets.
- Forex.com futures fees are not fixed but vary based on the state of the market.
Forex.com Pros and Cons
Advantages of Forex.com
The advantages of Forex.com are listed below.
- Regulatory Assurance
- Low Forex Fees
- Comprehensive Educational Resources
Disadvantages of Forex.com
The disadvantages of Forex.com are listed below.
- Limited Product Portfolio
- Higher Spreads on Standard Accounts
- No Guaranteed Stop-Loss Orders for U.S. Clients
Coinbase
- Coinbase is a cryptocurrency exchange that also offers futures trading.
- There are 5 futures offered by Coinbase. These are, Ethereum, Bitcoin, US500, FAANG Stocks, and Oil.
- On Coinbase futures can also be found as micro and nano for lower trading costs.
- Fees vary by futures traded, but typically start at $0.07 per contract traded when trading mini-futures.
How much money does it take to trade futures?
To start trading futures, an investment of at least $300 is generally needed.
With this amount each trader, considering the maximum leverage of 1:10, will be able to have the margin needed to invest in a good portion of the futures on the market.
The amount to be invested, however, can be lower or higher depending on the minimum margin allowed by the broker for certain categories of assets (such as index futures).
Types of futures contracts
The main types of futures contracts are:
- Futures on stock indices, such as the S&P 500
- Futures on currencies, such as the EUR/USD exchange rate
- Futures on commodities, which in turn are divided into Hard (such as precious metals) and Soft (such as coffee and wheat)
- Bond futures, such as government bonds
Can leverage be used to trade futures?
Futures can be traded with leverage up to 1:10 depending on the broker’s policy.
Trading with 1:10 leverage means multiplying the market exposure of one’s investments by 10, thus causing greater losses or gains depending on the outcome of the trade.
In other words, investing $100 will allow one to invest in a futures contract that is worth $1000, but the gains and losses from trading the latter will be projected onto the $100 invested.
So if the futures contract closes at $990, i.e. loses 1% of its value, the trader will lose $10 on the $100 invested (i.e.10%), and not just $1 as would have happened if he had not used leverage.
Pros and cons of investing in futures
Pros
The main advantages of investing in futures include the transparency of the market, the fact that it is a market based on tangible assets, and that it is virtually impossible to manipulate market prices.
In fact, futures prices vary based on tangible future events and scenarios that can tangibly alter supply-demand laws. This characteristic makes futures one of the most transparent assets in which to invest.
Cons
However, investing in the futures market is one of the most complex assets to carry out effectively.
Each futures asset, even if part of the same category, is regulated by different market laws. To predict the change in valuation on coffee and soybean futures contracts, two totally different types of valuation must be carried out.This requires not only knowledge of technical analysis, but also requires individual knowledge of how coffee and soybean crops work, which countries produce the most, what are the ideal conditions for getting a better or poorer crop, what are the main varieties and what natural needs they have, and much more.
How long do futures contracts last?
Futures contracts have a monthly maturity.
This means that there is one futures contract for each month. If you don’t want to trade a futures with such a low maturity, you can invest in the following months’ futures.
In other words, if it is early January and you want to invest in a long-term futures, you can buy April, September or December ones depending on how long you are willing to keep the position open.
Can I trade futures without a broker?
Trading futures always requires an intermediary, whether it is a bank or a broker.
In fact, futures are a complex market to access without having a brokerage entity.
As with stocks, futures are listed on particular exchanges that accept order requests only from institutions.
If you do not want to open a trading account with a broker, you can ask your bank if they offer investment services. If so, your bank may give you the ability to buy and sell futures through their systems.
However, always consider the fact that brokers generally offer much more competitive fees than banks.