Futures brokers have different licensing requirements and training than stock brokers. A futures broker must have a Series 3 license, while a stock broker is required to have a Series 7 license. Some brokers are dually licensed, so they can broker both kinds of financial instruments. The principles for selecting any broker are the same: know what your trading goals are, and look for the right fit.

Before you can make a trade in the futures or options on futures markets, you must open an account through a licensed Series 3 commodity brokerage representative. There are several types of brokerage firms from which you can choose:

Full Service Brokerage
A full service brokerage firm will offer you advice on investment strategies, research and news. Commission fees are generally higher, due to the multiple services these firms can provide.

Discount Brokerage
If you are a more experienced trader who makes his or her own trading decisions, a discount brokerage firm generally offers lower commission costs and might work for you. With this type of firm, you would need to make your trading decision and place it with your firm, either over the phone or through a direct access electronic order entry system.

Introducing Broker (IB)
An IB is a full service brokerage firm, which usually specializes in the futures markets. These firms execute buy and sell orders on commodity exchanges through established firms which are clearing members of the exchanges. An IB may not have an easily recognizable name, but can provide the same attention to your account as a full service firm. IBs are often found in smaller cities and may serve your needs as thoroughly as a well-known full service brokerage in a larger city.