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Best online commodities trading firm?
iostream
Registered User regular
Registered User regular
Hi fellow PAers,
I'm interested in starting out in this field: trading commodities online. Do you guys know of any reputable (most important!) and low-cost firm which provides this service?
I'm currently residing in Canada.
This is my first time trying something like this. I'd imagine that length of operation, cost per transaction, reputability, minimum account setup amount, ease of use etc matters? What other factors are there to consider?
I'm interested in starting out in this field: trading commodities online. Do you guys know of any reputable (most important!) and low-cost firm which provides this service?
I'm currently residing in Canada.
This is my first time trying something like this. I'd imagine that length of operation, cost per transaction, reputability, minimum account setup amount, ease of use etc matters? What other factors are there to consider?
The Carrot
Gugu held out his long carrot and said, "If you call this a carrot, you oppose its reality. If you do not call it a carrot, you ignore the fact. Now what do you wish to call this?"
Gugu held out his long carrot and said, "If you call this a carrot, you oppose its reality. If you do not call it a carrot, you ignore the fact. Now what do you wish to call this?"
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These types of funds have high liquidity and are already available to the retail investor via your brokerage.
They are not as pure a play as directly owning commodities/futures, but then you don't have to deal with vetting new brokerage, educating yourself on trading a new security and the risks involved, nor are there any commodity storage or delivery concerns.
Some things don't become apparent until you've tried them. I recall being quite frustrated a couple of times when trying to execute options during periods of turmoil/high volatility and volume. I noticed it's sometimes harder to get an option executed during these times, and it may be a longer wait on the phone to get an associate.
What brokerage do you use and is it online-based?
I have never used a brokerage before, so to me any brokerage is a new brokerage.
Gugu held out his long carrot and said, "If you call this a carrot, you oppose its reality. If you do not call it a carrot, you ignore the fact. Now what do you wish to call this?"
I believe Pershing LLC actually handles the brokerage accounts for Vanguard and I'm not sure who does the same for Fidelity. Regardless of who actually is performing the brokerage, to check balances or setup online trades I go to vanguard.com or fidelity.com.
I use Scottrade for my broker. They charge $7 a trade and don't have any nonsense fees. If you're interested in using Scottrade PM me and I'll give you a code for some free trades.
If you're looking to trade commodity futures and options I have no idea what broker to recommend. I don't think Vanguard or Scottrade let you trade commodity futures and options, and Fidelity might not either.
That said, commodities trading can be extremely risky. Do you have a good idea of what you're getting into here?