Are you a Futures trader? Then our Infinity Future broker review is for you! Trading futures is a complicated business, even for experienced traders. And, so is shopping for the right brokerage firm to use. It’s not just about contract fees and trading platforms (although both are important factors to consider). If you want to know the missing ingredient to look for when shopping, you might want to keep reading our Infinity Futures broker review.
An Introducing Brokerage is a brokerage who has direct relationships with clients; yet sends its actual order requests to another firm for execution on the trading floor.
At this point, you’re probably wondering why a company would do this? Wouldn’t it make more sense to provide a one-stop shopping experience for customers?
Infinity Futures doesn’t think so. They’d rather focus their energies servicing the needs of their clients and leave the order execution business to their partner firm; TransAct Futures.
Our Infinity Futures Broker review is something to read if you’ve taken our Futures trading course. Just like with anything, you need to study to learn how to trade Futures.
TransAct Futures is an FCM, or futures commissions merchant. In fact, Infinity Futures is a wholly-owned subsidiary of TransAct Futures.
For those of you unfamiliar with FCM’s, they facilitate the acceptance of buy/sell orders for futures or options on futures along with the payment (commission) from customers.
Along the same lines, an FCM has the responsibility of collecting margin from customers and for ensuring asset delivery once the futures contract has expired.
In order to do this, TransAct Futures provides the trading software, facilitates trade execution with the exchange and holds customer money in customer segregated accounts.
To make a long story short, Infinity Futures is your broker and TransAct Futures is the futures commissions merchant (FCM).
Click here for next level stock training and more advanced Futures training.
Infinity prides itself on its customer service. Every single account holder at Infinity is assigned a personal Customer Service Representative who also has CFTC and NFA credentials).
And it gets better; you also get a toll free number to their desk for direct access. You can contact Infinity as well to discuss any issue from lost internet connections, how to use trading platforms, charting software, rules of the exchange, hours, and issues affecting the markets.
Check out our trading service for more stock market trading.
One thing I like about Infinity is their fully integrated AT trading platform. You can trade from almost any device, anyplace, anytime, how great is that?
In fact, if your like Futures trading, then check out our live trading room. We have some fantastic Futures traders that stream in there. This Infinity Future Broker review can help you find a broker that words for you as well.
Infinity Futures’ primary emphasis of service appears to be toward intraday derivative traders. With decent pricing for trade commissions; far better than popular brokers such as TD Ameritrade or eTrade.
We’ve discovered in our Infinity Futures Broker review that they have extremely low intraday margin requirements to open and hold positions. As a result, Infinity Futures offers a compelling draw for this particular audience.
Our stock market indexes list can give you more ideas of different markets to trade.
Opening an account is simple; all you need to do is click the “Open an Account” link on their website. From there, you follow the steps and fill out the application. For those of you who prefer the paper route, you can download the account forms to fill out by hand.
The cost structure for placing trades is definitely on the low end of the spectrum. Arguably, the largest and best-known IB for derivative markets is Interactive Brokers.
Coming in at $4/RT per contract Interactive Brokers is hard to beat. Even some of the most popular brokerage firms, such as eTrade, can get as high as $10 / RT. But, with some crafty negotiation, you can talk yourself down to $5 / RT per contract with Infinity.
I have to be honest, Infinity’s charting software is basic. However, it is free if you make 10 RT trades per month. What’s more, they slash their data fees only cost $15/month for the basic package.
Comparatively, Trade Navigator, a popular charting software package, costs $60/month for the same coverage and feed quality. And for that fact alone, Infinity is a real bargain. It’s also worth noting eSignal can be connected as well as BookMap.
As it stands now, Interactive Brokers requires $1,812.50 to open a CL position intra-day, whereas Infinity requires a mere $1,000. You can easily see Infinity provides a much lower barrier to entry into futures markets for the beginning trader.
One important consideration to take into account when getting involved in intra-day futures trading is latency. For starters, latency matters because the price of a futures contract can move several units (referred to as ticks) within seconds.
To put this in perspective, the most highly traded derivative contract is the ES, whose price correlates to the S&P 500 index. Each tick has a value of $12.50 per contract. Unfortunately, just a few seconds of latency before an order is filled can amount to a significant amount of money lost over time.
Let’s take a market order to buy ten contracts as an example. If it gets filled just three ticks away from when the order was first transmitted, that ends up being $375 off the realized profit or loss of the trade.
Infinity has streamlined software and a quality data feed which results in excellent latency times. Their data reflects the tick-to-tick price changes with almost no delay; and orders get filled within milliseconds as to when they are transmitted. Without a doubt, this is a fantastic selling point for the serious trader.
Notably, the only way to get a significant edge over Infinity Futures’ execution times is to switch to one with institutional infrastructure. Not surprisingly, this comes with a significant increase in cost.
Take Trading Technologies as an example. They have the most easily accessible institutional-grade data and software for the retail trader. But their minimum monthly fee is $400. The choice is yours.
Investors and traders interested in futures trading may want to consider an account with TD Ameritrade. TOS hosts more than 50 futures products in a variety of categories, such as commodities, stock index futures, currencies and bonds.
The commission for trading futures on TOS is $2.25 per buy or sell contract (negotiable for active traders). What I like about TD Ameritrade is its advanced platform for futures trading.
Without a doubt, TD Ameritrade’s platform is more sophisticated than at Infinity Futures. We also have the discount broker TastyWorks who is much better priced than TD Ameritrade.
The last time I checked, TastyWorks’s commissions on futures trading were $1.25 per contract.
Overall, IF is an established broker that has largely provided excellent service to many customers over the year. Their customer service, infrastructure, data, trading costs, and especially intraday margin rates are very competitive. Thanks for reading our Infinity Futures Review!No