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Questions to Ask Your Broker

It’s always wise to interview several different brokerage firms. You’ll want to find a firm that can meet your needs. If you are interested in trading CME® FX futures, you’ll want to be sure to ask:

  • Is this firm CME Clearing House-guaranteed?

Computer/System Requirements/Order Access Type

  • For traders who want to trade directly—what front-end systems does your firm support? (CME Globex Trader®, any ISV front-ends?)
  • Do you have a front-end that I can trade CME® Globex® products through? Is it CME-certified?
  • Is the front-end connected via the Internet or a direct line, such as a DSL, T1 or cable?
  • What are the computer system requirements?
  • Do you have a technical support phone line for customers? What hours is it available?
  • Is there another method of order entry and execution (such as a telephone backup)?
  • What other features are offered with the front-end, such as charting tools and depth of market? Are these at an additional cost?

Costs and Fees

  • Are there additional costs involved with a phone order?
  • What is the total fee for a round-turn (entry and exit) trade per unit?
  • Are there any other fees that I will incur, including potential fees for trading at more than one exchange?
  • What amount do I need to deposit to open an account? How many contracts will that amount allow me to trade on GLOBEX?
  • What is the minimum account size the firm is willing to accept?
  • Who receives the interest on my funds?

Performance Bonds

  • What are the performance bond requirements? Are they different for trades held overnight?

Statements/Disputes

  • How will I receive my statement?
  • How are disputed orders handled?

Full Service Brokers

  • Does the broker have knowledge of the fundamental and technical factors affecting the currency futures markets?
  • If you are working with a full service broker, what is his or her track record?


Why We Made This Site - A message from Andy Daniels, CEO and Founder of Daniels Trading.