A forex broker is a financial services company that provides traders access to platforms for buying and selling various financial instruments, including currencies, commodities, indices, and futures. Acting as intermediaries between retail traders and global financial markets, these brokers facilitate transactions electronically, offering tools, resources, and support to help traders navigate the complexities of the markets.
Futures trading involves buying and selling contracts that obligate the purchase or sale of an asset, such as commodities, currencies, or indices, at a predetermined price and date in the future. These contracts allow traders to speculate on price movements, hedge risks, or gain exposure to different asset classes. Futures markets are highly liquid and can offer significant leverage, making them appealing for traders seeking to profit from both rising and falling markets. Many forex brokers offer access to futures trading, providing platforms with advanced charting tools, risk management features, and competitive spreads. Traders can choose from a range of futures contracts, including those tied to popular commodities like oil, gold, or agricultural products, as well as major financial indices such as the S&P 500.
With numerous online forex brokers available, finding the right one for trading futures can be challenging. In this article, we’ve compiled a list of the best forex brokers for trading futures. Our goal is to assist you in finding trustworthy partners that align with your trading objectives while ensuring a smooth and efficient trading experience.
A List of Top 10 Forex Brokers for Future Trading
- Pepperstone: Best Overall Forex Broker
- IC Markets: Best for for Tight Spread
- ActivTrades: Best for EU and UK TradersÂ
- Etoro: Best For Social Copy TradingÂ
- BlackBull Markets: Best Broker For Free TradingView
- Exness: Best for Instant Deposit and Withdrawal
- XM: Best for Deposit Bonus
- Eightcap: Best for Smart Trading Tools
- Avatrade: Best for Automated Trading
- FBS: Best For High Leverage (as high as 1:3000)Â
Best Forex Brokers for Future Trading ( Reviewed and Compared)
Can I trust these online brokers for Future Trading?
Yes, you can trust these brokers. Brokersway recommends brokers based on facts and findings. We evaluate brokers based on 170 data points grouped into 6 macro categories including regulations and security, fees, Trading experience, trading tools, customer support, and trading education. Multiple regulatory authorities regulate these brokers. So they are legit and trusted. Here are the regulations of these brokers
- Pepperstone: Regulated by 7 regulatory authorities including FCA, ASIC, CySEC, BaFin, DFSA, CMA, and SCB
- IC Markets: Regulated by 3 Regulatory Authorities including FCA, CySEC, and ASIC
- ActivTrades: Regulated by 5 Regulatory Authorities including SCB, FCA, CMVM, BACEN, and CVM
- eToro: Regulated by 7 Regulatory Authorities including SEC, FINRA, FCA, CySEC, FSA-S, SIPC, ADGM
- BlackBull: Regulated by 2 Regulatory Authorities including FMA, FSA-S
- Exness: Regulated by 8 Regulatory Authorities including CySEC, FCA, CMA, FSCA, FSA in Seychelles, CBCS, FSC (Mauritius), and FSC (BVI)
- XM: Regulated by 5 Regulatory Authorities including ASIC, CySEC, DFSA, FSCA, and FSC in Belize (Global)
- Eighcap: Regulated by 5 Regulatory Authorities including ASIC, FCA, CySEC, SCB, and FSASVG
- AvaTrade: Regulated by 9 Regulatory Authorities including ASIC, JFSA, FSA, FSCA, ADGM, CBI, ISA, KNF, IIROC
- FBS: Regulated by 3 Regulatory Authorities including Cysec, ASIC, FSC-Belize
How Did We Choose the Best Forex Brokers for Trading Futures
To choose the best brokers for Future trading, we follow the procedures below.
Research
To find the best forex brokers for future trading, we conducted extensive research, focusing on the features, services, and regulations associated with each broker. We analyzed market trends, broker offerings, and user feedback to understand what traders value most. This comprehensive approach allowed us to build a solid foundation for our evaluations.
Data Collection
We gathered data from various reliable sources, including official regulatory bodies, broker websites, and reputable financial news platforms. This data encompassed key metrics such as trading fees, available assets, leverage options, and client support services. Additionally, we considered user reviews and testimonials to gauge trader satisfaction and experiences.
Verification
After collecting data, we verified the information to ensure accuracy and reliability. This step involved cross-referencing details from multiple sources, including regulatory websites and independent reviews. By ensuring that our data is accurate, we aim to present an honest assessment of each broker’s strengths and weaknesses.
Live Testing
We conducted live testing of the shortlisted brokers to provide a real-world perspective. This involved opening demo accounts and executing trades to evaluate the trading platforms, order execution speed, and customer service responsiveness. Our live testing process allowed us to assess each broker’s performance under actual market conditions, providing valuable insights into their functionality.
Scoring
Finally, we scored each broker based on a set of criteria, including regulatory compliance, trading costs, platform usability, available trading instruments, customer support, and overall user experience. Each category was assigned a specific weight, reflecting its importance in the trading process. The scores helped us rank the brokers, ensuring that our recommendations align with the needs and preferences of traders who want to trade futures or other trading instruments.
What is a Forex Broker?
A forex broker refers to a financial institution or firm that facilitates access to the foreign exchange market, allowing traders to buy and sell currency pairs. By connecting clients to liquidity providers, brokers offer trading platforms for seamless order execution, real-time price updates, and market analysis. They operate during global market hours, ensuring traders can engage in forex trading throughout the week.
In addition to currency pairs, forex brokers often provide CFDs on various financial instruments, such as commodities, indices, stocks, and cryptocurrencies. These contracts allow traders to speculate on the price movements of these assets without having to own them. Forex brokers may also offer leverage, advanced charting tools, and educational resources to help traders enhance their strategies and make more informed trading decisions.
What is Future Trading?
A futures contract is a standardized financial agreement to buy or sell an asset at a predetermined price on a specific future date. These contracts are commonly used for commodities, such as crude oil, gold, and agricultural products, as well as financial instruments like stock indices and currencies. Futures contracts are traded on exchanges, and they are legally binding, meaning both parties must fulfill the contract terms at expiration unless they choose to close their position before the settlement date.
Futures trading allows investors to speculate on price movements or hedge against potential market risks. Traders can take long positions (buy) if they expect the asset price to rise, or short positions (sell) if they anticipate a decline. Futures contracts are also popular for leveraged trading, as brokers often provide margin accounts, allowing traders to control larger positions with a smaller initial investment. These contracts can be used for a wide range of assets, including stock indices, commodities, and currencies, providing diverse trading opportunities in various markets. However, due to their high-risk nature, futures trading requires careful risk management and market knowledge.
How to Trade Futures on Forex Brokers
To trade Futures, you need to have a solid understanding of what futures contracts are and how they are traded. Futures are standardized financial contracts that obligate the buyer to purchase, and the seller to sell, an asset at a predetermined price and date. These contracts can be used to trade a wide range of assets, including commodities, stock indices, currencies, and bonds. Futures trading is commonly used for speculation, hedging, and portfolio diversification. The prices of futures contracts are influenced by factors such as market demand, economic conditions, interest rates, and geopolitical events. Because futures contracts are leveraged, they offer the potential for high profits, but they also carry the risk of significant losses. Next, develop your skills in market analysis and create a trading strategy that will help you generate effective trading signals. Start futures trading by practicing and refining your strategies on a demo account to gain confidence without risking real money. Once you’re ready, you can follow this step-by-step guide to start live futures trading:
Step 1: Choose a forex broker that offers futures trading and open a trading account.
Step 2: Verify your account, fund it, and download the trading platform if required.
Step 3: Select the futures contract you wish to trade and create a new order.
Step 4: Set your trade parameters, including trade volume, stop loss, and take profit levels.
Step 5: Place your order by clicking ‘buy’ or ‘sell.’
Step 6: Monitor your trade and close it when you achieve your target. This completes the futures trade.
What Factors Influence the Price of Futures (CFD) Pairs
Futures Contracts for Difference (CFDs) enable traders to speculate on the price movements of futures contracts without owning the underlying assets. These CFDs are influenced by the same factors that drive traditional futures prices, including market fundamentals, geopolitical events, and economic data. Below are the primary factors that affect the price of Futures CFDs.
1. Underlying Asset Performance
The price of a Futures CFD directly correlates with the performance of the underlying asset, whether it is a commodity, index, or currency. For instance, crude oil futures CFDs are influenced by global oil demand and supply dynamics, while index futures CFDs respond to the performance of their constituent stocks. Changes in the value of the underlying asset are immediately reflected in the CFD price.
2. Supply and Demand Dynamics
Supply and demand are critical in determining futures prices, particularly for commodity-based CFDs. For example, rising demand for natural gas during the winter months or reduced supply due to geopolitical tensions can increase the value of corresponding Futures CFDs. Conversely, oversupply or weakening demand can depress prices.
3. Economic Data and Indicators
Economic releases such as GDP growth, employment figures, and manufacturing data impact Futures CFDs. For instance, strong economic data can boost equity index futures CFDs, while weaker data may lead to declines. Commodity futures CFDs, such as gold or oil, respond sharply to inflation data, interest rate changes, and industrial production reports.
4. Central Bank Policies
Central bank decisions on interest rates and monetary policies significantly affect Futures CFDs. Higher interest rates tend to strengthen the local currency and impact bond futures negatively, while lower rates are supportive of equity and commodity futures. Federal Reserve announcements, in particular, often create volatility across a range of futures markets.
5. Geopolitical Events
Geopolitical events, including trade conflicts, sanctions, and regional instability, influence the price of Futures CFDs. For instance, tensions in the Middle East often drive up crude oil futures CFDs, while trade disputes can impact agricultural commodity futures. Political uncertainty or global crises may also lead to increased demand for safe-haven assets, such as gold futures CFDs.
6. Seasonal Factors
Seasonal trends are particularly important for commodity futures CFDs. Agricultural commodities, for example, are influenced by planting and harvest cycles, while energy commodities like natural gas see price fluctuations based on seasonal weather patterns. Traders often anticipate these seasonal effects, impacting Futures CFD prices in advance.
7. Currency Movements
Futures CFDs on commodities and indices are sensitive to currency fluctuations. A weaker domestic currency makes commodities more expensive in international markets, potentially increasing their futures prices. Similarly, index futures CFDs tied to multinational corporations are influenced by exchange rate dynamics, as earnings may fluctuate based on currency strength.
8. Speculation and Market Sentiment
Futures CFDs are heavily influenced by speculative trading. Market sentiment, driven by news events, market trends, or investor confidence, often leads to rapid price changes. For instance, bullish sentiment in equity markets can drive up stock index futures CFDs, while bearish sentiment may benefit safe-haven asset futures.
9. Storage and Carry Costs
For commodity-based Futures CFDs, storage and carry costs are factored into pricing. Futures contracts that include commodities like oil or natural gas may experience price increases to account for storage expenses and interest rates. These costs are embedded in the CFD price and can create noticeable fluctuations over time.
10. Expiry and Rollover Dates
Futures contracts have expiry dates, and the pricing of Futures CFDs often reflects the approaching expiration. As expiry nears, prices align more closely with spot market values. Rollover dates, when contracts are switched to the next expiry, may introduce temporary price volatility in Futures CFDs.
Final Verdict:
If you are a trader looking to trade futures, you can choose a forex broker that offers a variety of futures contracts, competitive fees, and advanced trading platforms is essential. We have thoroughly reviewed and compared the top forex brokers for futures trading, focusing on their regulations, trading conditions, and overall service quality. Below are the best brokers for trading futures:
- Pepperstone: Best overall for futures trading, offering competitive spreads, fast execution, and top-tier regulation by ASIC, FCA, and CySEC, along with access to popular futures markets.
- IC Markets: Known for its tight spreads and superior liquidity, IC Markets offers excellent conditions for trading futures with low costs and access to global markets.
- ActivTrades: FCA-regulated and trusted by traders in the EU and UK, ActivTrades provides a reliable platform for trading futures, along with professional tools and resources.
- Etoro: Ideal for social trading, Etoro allows traders to invest in futures while following and copying strategies from experienced traders.
- BlackBull Markets: Provides free access to TradingView for advanced charting and technical analysis, making it a strong choice for futures traders who value in-depth market research.
- Exness: Known for its fast deposits and withdrawals, Exness offers a smooth trading experience with a wide range of futures contracts.
- XM: Offers a deposit bonus, which can benefit futures traders looking to expand their capital and enhance their trading positions.
- Eightcap: Known for its advanced trading tools, Eightcap provides a feature-rich platform for traders seeking to gain an edge in futures markets.
- Avatrade: Best for automated trading, Avatrade supports various platforms, including MetaTrader and proprietary solutions, perfect for futures traders looking for efficiency and automation.
- FBS: High leverage up to 1:3000, ideal for experienced futures traders who want more exposure to the markets with increased risk tolerance.
Each of these brokers is regulated and offers competitive conditions for trading futures. Choose a broker that fits your trading preferences, whether you’re seeking low costs, advanced tools, or social trading features, and start your futures trading journey with confidence.
