• Where to Trade Futures involves selecting the right environment to engage in futures contracts, which are agreements to buy or sell an asset at a set price on a future date. In the instance of trading in futures, it can help gain profit with price movement and leverage, using only a small initial margin deposit in hedging and speculative functions. In 2024, the trading volumes of futures are high, and the strategies sophisticated.  

• The ASX 24 had more than 14 million trades in May 2024. State-of-the-art technologies in the form of artificial intelligence and real-time news analysis are now installed on modern trading platforms to support adaptive trading strategies. In today’s dynamic market, knowing where to trade futures and how to choose a good trading platform becomes very important. 

Top platforms for beginners to discover where to trade futures 

Thaurus 

• Thaurus provides a platform for futures trading, which are evidenced contracts for the sale or purchase of an asset at a price fixed in advance for a particular date in the future. These futures contracts are needed in hedging price fluctuations in commodities, currencies, and various other assets which a trader can trade on margin. This means trading with a much lower initial capital, which can amplify your returns but at an increased risk of large potential losses.  

• Thaurus supports both long and short positions, enabling the exploitation of expected price movements whether prices are foreseen to appreciate or depreciate. Futures trading at Thaurus requires an extensive understanding of market dynamics and disciplined risk management, which is possible if the traders are well informed about market conditions and able to have the best risk controls optimizing return maximization through stop-loss orders and position sizing. 

Tastytrade 

• One of the best trading platforms is TastyTrade, known for its crisp, clutter-free default layout and professional-grade trading tools. The experience is very fluid, with traders able to get in and out of positions in a very short time. Tastytrade truly excels at charting, making it one of the best platforms for those relying much on technical analysis. Charts offered on the platform are second to none, full of features for in-depth market analysis. Tastytrade is great because of the robust and efficient environment it provides with a focus on charts. 

Interactive Brokers 

• Interactive Brokers (IBKR) stands out for its exceptionally low futures commissions, with fees for trading an E-micro contract or an option on a micro as low as a quarter. The Trader Workstation, or TWS, is highly customizable and filled with tools, data, research, and news. IBKR has lately added quite significant improvements to TWS, one of which is the much-enhanced charting package. On the other hand, though, designing or customizing a layout on TWS is quite unnecessarily hard for some. To this end, IBKR is introducing a new IBKR Desktop app that will provide a much more integrated and simplified user experience. 

• While Interactive Brokers offers numerous advantages, it also has a stringent compliance process that can make obtaining futures trading approval challenging. Even with qualifications such as a CFA, CMT, and experience in teaching investing, securing approval for futures trading with IBKR can be difficult. This issue was not encountered with other brokers reviewed, highlighting the unique and often restrictive nature of IBKR’s approval requirements. 

Tips for beginners to determine where to trade futures 

Develop a trading plan 

• First, plan out in detail any trade that you are going to make before finally deciding to dive into the market. Planning a trade basically requires a defined profit goal and an existing plan on institutionalization of a trade in case it turns unfavorable. This way, you would avoid the tendency to make emotional decisions like holding onto a losing position too long or getting out of a profitable one too early due to fear or greed.  

• Such errors can be avoided by incorporating risk-management tools, like stop orders or bracket orders. For instance, the action of buying a contract of December silver at $20 per ounce can be controlled by a stop-loss at $18 and a profit objective at $25. This will then limit potential risk to $2 per ounce while seeking a $5 per ounce gain. 

Safeguard your position 

• Setting an exit strategy in advance can help immensely in cutting the potential loss if the market does indeed move against you. A mental stop is where you decide in your head where you want to close the position a method very unreliable and easily ignored. Stop orders set the exit point firmly.   

• Stop orders help one stay with a strategy, but they are not faultless; the execution can be variable, and in fast-moving markets and futures contracts, stops are not guaranteed to fill because of price protection points. 

Refine your focus 

• Do not overextend yourself by trying to trade too many markets at once. In some futures trading, the extensive analysis in studying charts, reading market commentary, and keeping up with news performed for too many markets all at once could be overwhelming and might cause one to be too thin to focus on any single market. Yes, diversification can help manage risk, but it does not clear a person of losses altogether. For instance, in a case where the price of gold is seen to be declining and that of cocoa due for a rise, it will balance losses in one market with gains in the other. 

Manage your trading pace 

• For a person starting to trade in futures, it is best not to rush into the market with big positions. It is dangerous to jump into the deep end right away with five or ten contracts; severe drawdowns might happen. Do trade one or two contracts first in order not to get into the headache of trading bigger positions, and then slowly adjust your trading methods and sizes of orders as your confidence and skill grow. Also, consider smaller contract sizes like CME Group’s E-mini or Micro E-mini contracts to help you manage your risk and minimize any potential losses while learning. 

Consider both long and short positions 

• There are trading opportunities in rising, as well as falling markets. While it might be a tendency to look for opportunities to “go long,” having the ability and the vision to “go short” can add other dimensions to trading. For example, assuming a trader believes that the price of crude oil is going to head lower, they may sell December crude oil futures at $50 per barrel with the intention of buying back lower for a profit. In futures trading, one can buy or sell and then close the positions in either direction, posting the required margin for both trades. Therefore, one needs to identify occasions for shortening, but it must be remembered that it involves the risk of possible unlimited losses because the market prices may rise infinitely. 

Gain insights from margin calls 

• A margin call can often be a sign that one is holding onto a losing trade for too long. It is often prudent to treat a margin shortfall as a signal for reassessment and possible exit; emotional attachment to a failing trade can be a damaging trait. Cutting the losing trade and seeking new opportunities, rather than putting more money into the trade or cutting positions to meet the margin requirement, should be the course of action.  

• The futures margin, also referred to as the performance bond, is the minimum deposit required to initiate and maintain any future position. Any immediate demands for extra funds or position liquidation can result from a fall in the minimum margin; in this case, all losses are the responsibility of the trader. 

Conclusion 

• Thaurus is a top choice for those exploring where to trade futures. The platform offers a comprehensive range of services, from seamless account opening to advanced trading tools and resources. Traders benefit from features such as heatmaps, pip value calculators, economic calendars, and much more. These tools are designed to enhance trading strategies and decision-making, providing a robust support system for both beginners and experienced traders alike. With Thaurus, navigating the futures market is made more accessible and effective. 

• Contact us to know more about where to trade futures and our team will revert back in 24 hours.