Step 1: Choose a Futures Broker
There are hundreds of retail futures brokers out there. Do they all offer top-notch service? Absolutely not. Therefore, we recommend that you read the tips described in the section above to find a broker that best suits your needs.
If you don't have time for that, you can find our top five rated futures brokers at the bottom of this page. Each broker is highly regulated and offers thousands of financial instruments that you can use to take long or short positions.
Step 2: Open an account
All online futures brokers will ask you to open an account before you can start trading. Therefore, you will need to provide some basic personal information.
This includes:
- Name
- Nationality
- Home address
- Date of birth
- National Insurance Number (or Tax Identification Number)
- Contact
You will also be asked to verify your account. This is again to counter the threats of money laundering and to ensure that the broker complies with its licensing bodies. Therefore, you will need to upload a copy of your passport or driver's license. Most futures brokers can verify the documents immediately.
Step 3: Deposit
You now need to deposit some money into your broker account. The payment methods available to you will depend on the broker you use. For this reason, we recommend checking this before opening an account.
Nevertheless, brokers usually offer support for the following payment options:
- Debit card
- Credit card
- Paypal
- Skrill
- Neteller
- Bank transfer
Step 4: Find a CFD futures market
As a retail trader, you invest in futures contracts through a CFD. Remember that CFDs in exness trader never expire, so you can enter and exit the market at any time. To get the ball rolling, go to the CFD section on the broker's website and select the asset class you're interested in. For example, if you want to trade gold futures, look for the "Precious Metals" section.
Step 5: Make an investment
You should now be on the trading page for your chosen futures market. Since future CFDs are sophisticated trading products, you will be given a number of investment options. This means that you will have to fill out an order form.
This can be intimidating at first glance. Therefore, be sure to refer to the points listed below.
- Buy / Sell Order: First, you need to select which direction you think the markets will move. If you want to take a long position - meaning you think the asset's value will go up - choose a buy order. If you think the opposite, choose a sell order.
- Proportion: you must specify the size of your investment. Note that you do not need to enter your stake based on the number of contracts you want to buy or sell. Instead, simply add the amount in pounds and pence (or your local currency).
- Market / Limit Order: If you plan to enter the futures market when the asset reaches a certain price, opt for a "Limit Order". For example, if the price of oil is $25, but you want to go long when the price is $24, a limit order can facilitate this. Alternatively, a 'Market Order' simply executes your trade at the next available price.
- Leverage: if you have a slightly higher risk tolerance, you can use leverage with futures brokers. Simply select the amount you wish to apply - e.g. 2x, 3x, 4x, etc.
- Stop Loss Order: One of the most important segments of your order form is to ensure that you mitigate your losses. This can be done by setting up a stop loss order. Enter the price at which you want the trade to close if the markets are against you. For added security, pay an additional fee to install a "guaranteed" stop loss order.
Finally, depending on the type of order you place, click "Buy" or "Sell" to execute your futures trade.