Getting Started in Commodities

Chapter 13

Brokers and the Online Revolution

Finding the right broker is an essential part of becoming a successful commodities trader because the broker represents an important link between you and the financial markets. Once an order is entered, the broker sends it to the appropriate marketplace. Obviously, traders want an honest and reliable firm to handle this important part of the trading process. There is a lot of trust involved in this relationship.

While finding the right broker is important, it isn't always easy. There are hundreds of different firms to choose from. The fees or commissions will vary from one to the next. Some offer tools such as charting, research, and analysis. Others simply focus on providing cheap execution of orders and not much else. How do you find the right broker? This chapter is designed to help you narrow your search and find the right one.

Ask Your Friends

I really can't recommend any one broker. While there are clearly some that are better than others, without knowing you and your experience, goals, and financial resources, it is impossible to offer any sort of specific recommendation. While remaining broker neutral, I'll try to give you some of the facts and information that might help make your decision a bit easier.

Obviously, most brokerage firms try to win your business. These companies make their profits by generating commissions from trades and charging fees. The more customers who open accounts and trade, the more revenues and the greater ...