Trade US Futures 2022 – Trade the best futures cheaply

John James
October 12, 2021
What is the US future? Where can you trade US futures? Which US futures are there? US futures investing: is it worth it?
trade-us-futures

The US futures financial instrument is a contract between two parties that are governed by American law. This offers the participants maximum security and is an interesting tool.

Trading US futures has never been more accessible. Here is our take on this exciting investment opportunity and the best broker to trade US futures.

Table of Contents

What is the US future?

So-called futures are contracts between a buyer and a seller in which they seek to exchange a product at a predetermined price at a future point in time. US futures act as a protective mechanism for this type of transaction on the American market, as their high level of regulation, protects the interests of investors.

Participants in this type of trade are divided into two main groups: speculators and producers. The producers are responsible for creating this market in the first place. They estimate the price of a product or service before it exists – i.e. before production – to avoid possible losses and variations or uncertainties in prices in the future. On the other hand, speculators take advantage of this situation to benefit from price movements or fluctuations.

Which US futures are there?

One of the most attractive aspects of trading US futures is the large number of instruments to work with: from indices to cryptocurrencies to commodities, to name a few.

The major US futures include the following:

  • CME futures (American stock indices)
  • COMEX futures (gold, metals, copper etc.)
  • CBOE Futures (S&P 500 Volatility)

Where can you trade US index futures?

Trading futures is not a complicated concept. There are two parties: one that is selling and the other that is interested in buying an asset. Prospective buyers want to buy the asset because they believe that it will have a higher price in the future than they are currently paying. This value is specified in a contract that is concluded with the seller.

In short, when trading US futures, traders should be careful to see that the market is moving. Then they can look for fluctuations in which they can achieve economic advantages through margins or differences.

To trade US index futures, you have to deposit a minimum amount with a broker. This is intended for losses that can arise if the transaction does not work out in your favour. The other party is given a guarantee that you can pay for such an operation. This minimum amount varies depending on the broker you work with. For example, this minimum amount on ETFinance is lower than most US futures brokers.

We looked at the most critical online brokers for US index futures. Here are the results of our test:

How to trade US futures – our step-by-step guide with the test winner ETFinance

 

If one is interested in getting into the world of futures trading, this guide will be of great use. Here is a simple step-by-step guide on how to start trading futures on ETFinance.

Step 1: choose broker

This step is essential as most brokers do not offer this service. Take a look at our comparison above to get an idea of ​​the providers available. Of the available, we recommend ETFinance for its track record, low commissions, and ease of trading.

Step 2: Register with the selected broker

When you choose ETFinance, registration is easy and free. The first step is to log into the website and enter the relevant login details. You will then receive an email from ETFinance to verify the account. Then you need to fill out the electronic form and fill in your personal information, such as B. Full name, passport, address, mobile phone number. Finally, ETFinance verifies your identity data. Then, the account is ready to start trading US futures.

Step 3: Make the first deposit

At ETFinance, the minimum deposit to start trading is $ 200. After this money is available in the account, you do not have to use all of it in an investment. Further deposits are then possible from $ 50.

Remember that, depending on the country, you must also have a minimum amount in the account to be able to trade futures. This is the only way for the broker and the other participant in the transaction to be sure that you will bear the losses if the trade does not go as planned. But the reverse is also true – which is a good thing. Because if your transaction is successful, you can be sure that the other party will take over your losses.

In the following table, you can see which different payment options are included in the offer. You can then buy US futures.

Payment optionpossible?
Buy US futures with a credit card✔️
Buy US futures with PayPal✔️
Buy US futures with Skrill✔️
Buy US futures with wire transfer✔️
Buy US futures with Neteller✔️
Buy US futures with UnionPay✔️

Step 4: Trade US futures

After the account is active and you have funds in it, you can start trading US futures. All you have to do is choose which one you want to work with, and that’s it.

US futures investing: is it worth it? Our analysis

trade-us-futures

There are exchanges all over the world where you can make investments. However, the United States is notable for its high level of regulation. This policy offers the opportunity to establish a fair business for everyone. Many companies and organizations help with regulation and ensure security, whether by monitoring compliance with laws or preventing tax fraud.

For this reason, we believe that investing in the US market is an excellent option for traders. However, these are not the only features that trading US futures offers. We have therefore summarized the most important advantages and disadvantages below:

Advantages

  • US futures are fully regulated
  • Large selection of trading instruments with brokers like ETFinance
  • Central Value – Assets have official prices
  • Loads of strategies to choose from
  • There is a real wealth transaction going on

Disadvantage

  • Only a few brokers offer US futures
  • Trading and earnings depend on the volatility of the market
The best US futures at a glance

Below we explain what we believe are the best US futures to invest in and why. These groups represent companies, assets, indices, etc., that are listed on the American stock exchange and are subject to its regulations and guidelines.

CME futures

With these index futures, you can trade directly on stock indices from the USA and Asia. The US future prices are based on real-time charts. Among these indices, we find:

  • E-mini Nasdaq
  • E-mini S&P
  • Nikkei 225 yen
  • Nikkei 225

However, these are just examples of some stock indices that can be traded using US index futures. It is not an exhaustive list.

COMEX futures

This market mainly trades in commodities such as oil, gold, silver, gas, palladium, crude oil and platinum.

CBOE futures

This future can be used to trade the VIX index, i.e. the index that measures the volatility of the S&P 500. It is one of the most crucial stock indices on the American market.

US Futures – Financials at a glance

Based on the futures mentioned above, we have compiled the percentage change in the futures to date, the opening and closing value and the percentage change within a year in the following table.

CME futuresCOMEX futuresCBOE futures
Change+0.031%+0.17%+ 2.21%
Opening value$ 218.75$ 1,906.80$ 17.23
Final value$ 218.76$ 1,905.30$ 6.76
Change within one year19.8%151.95%N / A
Tape1,019,061N / AN / A

US Futures Trading Prices – What Does a Futures Contract Cost?

trade-us-futures

There are many variables to consider to determine the price of a US future, such as: the type of asset, the time, the amount and other things. Commodity futures are concluded with a maximum term of three months, but the contractually stipulated time for interest rate futures is a maximum of 30 days. Futures can vary in price depending on their type, reflecting an attitude or interest on the part of traders.

The best way to find out the true value of a futures contract and the fees due is to contact the broker in question to get this information first-hand.

Is futures trading worthwhile for private investors?

From our point of view, trading US futures is worthwhile for private investors because one is trading in a market with a high degree of security. This reduces the risk of loss through high-grade security systems that do not allow price manipulation and prevent fraud. In addition, if you have a good broker, there are also many instruments and tools available to carry out the most accurate analysis possible and thus to get more chances of winning.

Trading in US mini-futures for beginners

Over the years, the futures market has grown and therefore of great interest to many traders. Mini-US futures allow you to trade exactly the same way as normal US futures but only cost a tenth of the price. So if you’re just a beginner, this can be a great option to start trading the futures market – but at a better price that lowers the risk factor.

US Futures at ETFinance – Why we recommend trading US futures at ETFinance

Working with US futures is quite attractive, but not many brokers offer this service. Most of the brokers that offer it also charge very high commissions – in contrast to ETFinance.

We recommend ETFinance because its long history in the market and its European trading regulations ensure that we are working with a high-level broker that offers the ability to trade US futures. In addition, a large number of US futures Offers options and mini-futures. This makes it the most comprehensive broker for this type of trading.

Conclusion on US futures – our recommendation and evaluation

Trading US futures is an excellent option as it provides a large number of instruments and is protected by the security guidelines of the American market. However, for maximum profits, we recommend working with a qualified broker like ETFinance, which has many advantages for trading this financial instrument. These include low commissions and a vast community of traders with whom you can constantly learn new things.

4.9
4.9/5

Our recommendation: Trading at Investby

Our recommendation: Trading at Investby

  • The broker provides an Islamic Account
  • It provides a dedicated account manager
  • Receive customised investment news
  • Trade with a variety of assets
  • There’s no deposit limit
ABinvesting Review
4.5
4.5/5

Our recommendation: Trading at ABInvesting

  • Acknowledge the financial markets through education material 
  • Free VPS is available 
  • Get a swap discount of 50 per cent 
  • Islamic Account is available to traders 
  • Select account types of your interest
4.9
4.9/5

Our recommendation: Trading at PrimeFin

  • Fifth decimal available 
  • Spreads begin from 0.03 pips
  • Commission is zero  
  • Full 10-hour support  
  • News alerts and VPS for traders

FAQs

US futures are contracts between a buyer and a seller in which they try to exchange a product on the American market and fix a price with a future date.

In a US futures contract, the seller is contractually obliged to deliver the asset on the due date, and the buyer is also required to buy it before the contract expires.

An index future generally relates to the performance of a stock index, which determines the future price of the cash payment.

As can be seen from our broker comparison, ETFinance is our test winner for trading US futures.

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