Questions About the Firm
Start with the firm itself, not the sales pitch. Ask: Are you an NFA member, and what is your NFA ID? Then verify it yourself on NFA BASIC. Ask how long the firm has been in business and who its clearing firm is — your funds are held at the clearing level, so you want a name you recognize. Ask whether your account will be handled by a specific broker or a general desk, and get that broker's name and direct number.
A firm that has operated under the same ownership for decades, like CCS since 1983, should be able to answer these questions in one phone call without hesitation. Vague or defensive answers are information too. If anything feels off at this stage, there are plenty of other firms.
Questions About Money
- What are your commissions, and what else will I be charged? Exchange fees, NFA fees, clearing fees, platform fees, and data fees all add up. Get the complete schedule in writing.
- What is the minimum to open and maintain the account type I want? Different account types often have different minimums.
- How do you handle margin calls? How much notice do you get, how can you meet the call, and when will positions be liquidated?
- How do I withdraw funds, and how long does it take? It is your money; the process should be simple and prompt.
Questions About Service
Ask what happens on a normal day: if you call with an order or a question at 10 a.m., who picks up? Ask whether the broker has experience with your specific situation — hedging corn and soybeans is a different conversation than day-trading stock indexes, and you want someone fluent in yours. Ask what research, quotes, and charting tools come with the account, and whether trade alerts or similar client services are included or cost extra.
Finally, ask if you can test the relationship first. A free trial period with simulated trading lets you evaluate the service, the platform, and the person before a dollar of your money is at risk. Any firm confident in its service should welcome that question. Futures trading involves substantial risk of loss and is not suitable for all investors.