subject: How to select a Emini Broker [print this page] How to select a Emini Broker How to select a Emini Broker
Picking a good reliable Emini broker is often difficult. A lot of factors must be taken into consideration. The first and important factor when selecting Emini broker is its registration with the NFA. Emini broker registered with the NFA must follow compliance rules. They are required to have certain amount of capital in their firm or they will be fine. The NFA regulates the future's broker making sure they are complying with them. The NFA has many duties; one of their main duties is to prevent fraud and scam that is very common in trading market. Brokers registered with the NFA offer some sort of relief to clients that are with them. However, there are no guarantees that a futures broker will comply with the NFA.
Next, it is important to pick a broker who is reliable and has excellent services. For example, it is best to pick a broker who can promptly respond to email or live chat. If a broker cannot offer basic service, then they are lacking resource such as employees and capital. A good broker firm can hire enough employees to offer services to clients. Another example of a good reliable broker is information. Information must be provided to clients that needs it. They must be able to explain the policy of the broker, explain how the futures market work, and what service that can give to clients. Some brokers may be unreliable providing service or information.
Trading platform is very important to day traders trading the fast Emini market. A reliable trading platform is needed; it must be able to provide fast quotes, time and sales, ladder trading option, strategy, and a good chart. The platform must be users friendly. Beside all these basic requirements, a good platform must be able to send information without any freezes or lag. Any freezes or lagging quote is very detrimental to a trader's account. A trader can lose a lot of money in matter of second due to platform failure. Platform failure is very common among many brokers. Therefore, traders should test a broker's simulator account before signing up with them.
A good broker usually offers good service and reliability. They often have enough employees to service their clients. However, cost will increase for these brokers. There operation cost is usually transferred to clients in the form of commission Brokers offering low commission is not always a good thing. The important thing is reliability, although clients may have to pay higher commission in return they get quality and in trading it is important. However, some brokers is able to offer good commission rate for $4.50 round trip or less and that is at discount rate trading 1-10 contracts and still able to offer great service. It is because traders continue to trade more contracts and make more trades.
Some brokers charge their client $12-$16 round trip and offer poor quality service. Brokers that practice bad business habits will not last long in the business. Quality and great service is what keep a good broker running for years. If a client has a lot of money in a broker's account, he is risking a large part of his money because of these brokers. These brokers may go out of business and lose their money often time due to losing clients. Unlike the stock market, the futures market is not insured. Clients who has large sum of their money in their account are at risk. If a broker goes out of business, the clients will lose all their money. It is important to take all these important factors into consideration. Randomly selecting a broker is never a good habit as there are risks.
