Shopping for a commodity brokerage is overwhelming; what should I be looking for?
Traders tend to spend endless hours researching the markets, but they fail to allocate the proper effort into choosing the right brokerage firm. In my opinion, it is this single decision that might be the most critical determinant of success or failure.
Each trader has a unique set of “needs” relative to trading style, experience level, account size, and other factors. Thus, there isn’t a blanket answer to this question; nor is the subject black and white.
First, let’s discuss the primary types of brokerage firms, some of the organizational characteristics to be aware of as a consumer, and the pros and cons of each. Next month, we’ll discuss appropriate service levels and trading costs for various types of traders.
Types of Brokerage Firms
