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The Advantages of Using Full-Fledged Futures Broker

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If you are interested in trading futures, you can find that there are a number of futures brokers available in Malaysia. A lot of these futures brokers offer full-fledged services but there are also some that offer inexpensive commission rates. Let’s dissect what happens when a futures broker receives a commission from you. First, a portion of the commission received is deducted to pay off the derivatives exchange for allowing futures contracts transacted via a secure and legal platform. There are two fees involved namely the exchange levy and the clearing fee. The balance after the deduction is called the gross profit. Take a step back and read these advantages you may encounter when using a low commission futures broker.


One of the first things to do before engaging a broker is to find out the resources provided by the futures broker. For example, do they also provide additional value-added trading tools and services like online trading platform, live quotes and charting software, market information such as 360-degree daily commentaries, training classes and so on? Do they charge for such trading tools?

Much like traveling with a full-fledged carrier versus a low-cost carrier, when a broker is able to offer a inexpensive rate, most often than not you are getting a stripped-down version of market insights, trading tools and dealer-assistance and expertise, if at all. Yet, this is a crucial area and key to assist traders to spot opportunities or exiting positions before major losses.

A full-fledged futures broker will be able to provide these services to you at no additional cost as it is already part of the rates offered. A full-fledged broker will also provide trader-centric educational resources i.e. knowledge base, learning center and tips to further assist traders in their learning.


Take a special note of a futures broker’s service and support before, during and after you become a client, because often, you will encounter situations where you need dealer-assisted support to technical queries i.e. trading platform setup and configuration and this is where it matters most. A full-fledged futures broker leverages on the expertise of its more experienced dealers to ensure consistent and efficient service. This is a win-win scenario.

Peace of Mind

Low commission trading accounts are usually self-managed by traders themselves. As the futures market can be highly volatile, you will have to monitor your account on your own during the trading hours and leave you exhausted at the end of the day. A full-fledged futures broker is able to provide a team of dealers to monitor all active trading accounts and their clients will be notified immediately of any unusual market movement and advised accordingly.

Consider the pros and cons of going with a full-fledged or low commission futures broker before making your choice, or go with both and compare the two. As a further reading, go through the 7 Questions You Must Ask Your Futures Broker. Cheers!

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2 Comments to The Advantages of Using Full-Fledged Futures Broker

  • December 21, 2011 at 8:20 PM | Permalink

    Amazing how simple it can be to communicate with people and have them understand a certain topic, you made my day.

  • Bettina Sowers's Gravatar Bettina Sowers
    February 10, 2014 at 1:21 AM | Permalink

    Just became aware of your blog through Google, and found that it is truly informative. Numerous people will benefit from your writing. Cheers!