Please keep in mind that the leverage when trading commodities is tremendous. For example; the margin required in your trading account to hold a Corn futures contract is $2100.00. Corn futures pay $50.00 per one cent of movement. You purchase a Corn contract and it moves twenty-five cents in your favor the very next day, your profit for that one Corn futures contract would be 25 x $50.00 = $1250.00. That is almost a 60% return on your original investment, which in this case was the margin money that was required for you to hold a Corn futures in your commodity trading account. That is some significant leverage! The tremendous leverage associated with commodity contracts is the very reason why you need a well qualified, professional commodity broker to work with you, assisting you in improving your trading skills.

Finally, when deciding on a broker to work with, go to the National Futures Association website and check out the history reported by the NFA for the broker you have an interest in working with. Also, check out the Futures Commission Merchant that your commodity broker clears his trades through. This only takes a few minutes of your time and you can verify that your broker is licensed and registered with the proper authorities and does not have a history of poor trade execution.

Working with the right futures broker for you is the first and most important step in a reliable approach for trading commodity futures. Rather your trading full-service, a discount futures trader, or an online daytrader trading the Mini S&P, a qualified, professional commodity broker will significantly enhance your skills as a commodity futures trader.

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