Benefits of an Online Commodity Trading Account
While the benefits of using a full service, professional commodity broker cannot be discounted, you may find online trading a more practical and beneficial choice because of many reasons. The following are only some of the greatest benefits of having an online commodity trading account:
- Reduced commissions – One of the most obvious benefits of using online trading platforms is reduced commissions. This benefit is best realised by large traders as well as those who trade on a regular basis. Sometimes, commission rates mean the difference between a profitable and a losing year. Commissions in traditional trading forums can add up quickly, but online trading often slashes trading costs by up to 50 to 75 percent. Trading futures online incur commission rates of about $5 to $10. Electronic markets are much cheaper than pit-traded ones and savings can be very substantial. A full service broker may charge up to 10 times or more in commissions than what you will have to pay in an online market, but you should not forget to factor in the expert trading recommendations and all the work that the broker makes to help you trade. Just the same, there are broker-assisted online accounts that you can look into if you want to receive help and bounce ideas off expert brokers.
- Shorter learning curve – The learning curve for online commodity trading is much shorter, which means you can learn more about commodities trading in the short time you spend trading online than you would when letting a full service broker do all the work. Additionally, not all brokers are excellent traders, though all of them can definitely help you with all the basics of trading. Trading online will help you develop your own strategies and gain insights about the market you are in, first hand. Your online trading account is also entirely under your control, which means all decisions are yours. This can be an excellent motivator as all your efforts can be channeled into fixing your mistakes instead of blaming your broker. Moreover, online trading environments also offer many great practice platforms to help you learn and get the hang of the online futures market and practice your strategies in a real trading environment.
- Faster execution – Lastly, online trades are a lot faster to execute, especially when participating in trades that move quickly. Online trading allows you to track orders and results a lot easier and faster.
About IC Markets
Headquartered in Sydney, International Capital Markets Pty Ltd is a provider of online forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade online. IC Markets has distinguished itself among industry leaders with its unique True ECN forex technology, proprietary tools and services, and remarkable focus on customer service. IC Markets is regulated by the Australian Securities and Investments Commission in Australia.