Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

FX Insights from Macro Hive

Receive exclusive insights on key FX macro themes, volatility trends, and market events through our bi-weekly report.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview
      • Getting Started with your Broker
      • Submitting a Futures Order
      • Futures Order Types
      • What happens when you submit an order?
      • Position and Risk Management
      • Closing Your Position
      Things to Know Before Trading CME Group Futures
      You completed this course.Get Completion Certificate

      Getting Started with your Broker

        • Also available in

        • 한국어

      Video not supported!

      Getting Started with Your Broker

      The futures exchange is where futures orders are received, and buy and sell orders are matched, to create “the market.” Futures exchanges have the objective to provide fast and accurate order execution, and to maintain an orderly market.

      Brokerages play an important role in the futures markets, as they are the link between the trader and the futures exchange. Brokers have many functions, including  their primary functions to provide a software platform to place orders, managing client deposits and connect traders to the exchange.

      Since individual traders cannot interact directly with the exchange, they need to rely on a broker who can send the orders they place to the exchange and manage the flow of money between the exchange and the trader’s accounts.

      When selecting a broker there are a few things you should consider: technology, cost and trading permissions.

      Technology

      In the past, orders were telephoned in to a broker who would place the order with the exchange. Now that trading is fully electronic, the technology available to individual traders is the same as institutional traders; orders are placed directly through a broker’s online platform.

      The technology of a broker’s platform will allow traders to place orders, perform analytics and create systems that can trade automatically, based on predefined conditions.

      Much like order execution software, features are varied from broker to broker, ranging from basic to more complex, incorporating many features. You can choose to trade with a broker who offers the features that best suit your needs.

      Cost

      Traders pay fees for the orders they place and the software they use. There are typically three fees that a trader will pay: Commissions, platform fees and Data feed fees.

      COMMISSIONS

      Each time an order is executed, you will  pay a fee to your broker, called commission. Commissions have two components, a fee to the broker and a fee to the exchange.

      Depending on the brokerage, the fee might be per contract, or a flat fee per trade in addition to the fee per contract.

      PLATFORM FEE

      Some brokers charge a monthly platform fee which covers the use of trading software. Depending on the account size and number of trades executed each month, this fee may be reduced or waived.

      Fees may also be charged for deposits, withdrawals and other services - which will be listed in the brokerage agreement.

      DATA FEED FEE

      Another cost you might have to pay is a data feed fee, which is charged by the exchange to provide real-time and historical price data that traders require for their charts.

      Depending on the brokerage, these fees might be built in to overall costs or might be charged per item.

      Permissions

      Brokers may have different restrictions and requirements which you should be aware of as they may affect what and how you trade.

      These restrictions may include:

      • Initial deposit amount
      • Margin requirements
      • Overnight trades
      • Contracts available to trade

      INITIAL DEPOSIT

      Each broker will set an initial deposit that is required to open an account. This amount varies from broker to broker.

      MARGIN REQUIREMENTS

      Margin requirements, an important aspect of the futures market, are set by the exchange.

      There is a rate set for normal trading hours and a higher rate set if traders hold the trades overnight into the next trading day.

      Each broker will set the amount of margin they are willing to give to traders and this will vary from broker to broker.

      OVERNIGHT TRADING

      The overnight session in the futures market is treated differently than the day session.

      Some brokers will require higher minimum deposits or special permissions to allow traders to hold futures trades overnight.

      CONTRACTS AVAILABLE TO TRADE

      There are many futures contracts available to trade, each with their own risk profile. Some futures contracts are more volatile and have large dollar values per tick, which is why some contracts will require larger accounts with special permissions to trade.

      For example, E-Mini S&P 500 futures (ES) is one of the first contracts enabled for traders. Whereas contracts such as Natural Gas may need to be requested to trade.

      Conclusion

      Since individual traders need a broker to transact orders they wish to place, and each broker provides slightly different set-ups, costs and permissions to trade, you can find a broker that best suits your needs.


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/things-to-know-before-trading-cme-futures/getting-started-with-your-broker
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
      Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern