Overview of Futures at TradeStation
If you’re looking for a brokerage firm that offers futures trading, TradeStation is definitely worth considering. With advanced software, a wide selection of tradable instruments, and a tempting promotion, this broker may have everything you need. Read on for the details.
Web Browser
For futures trading, TradeStation offers a simple but effective browser-based application. The platform can also be used to trade options, stocks, and ETFs.
You can launch the platform from the top of TradeStation’s website by clicking the Log In button. This will open a pop-up window with selections for multiple platforms. The Web Trading platform is the one used to trade futures contracts. It is available in both live and simulator modes, the latter being a great way to practice without risking real money.
Another platform in the pop-up window is FuturesPlus, which is used to trade options on futures.
The Web Trading platform has two themes: light and dark. You can switch between them using the gear icon in the upper-right corner. Other settings, like order entry numbers and confirmation pop-ups, can be adjusted here as well.
Charting and order entry for futures contracts work much like they do for equities. Start by entering a ticker symbol in the symbol field, located in the upper-left corner on the order ticket. On a graph, it will be on the tab at the top of the chart. You can also add a futures contract to the platform’s watchlist, which is a great way to track the current bid-ask spread and trading volume for the day.
To place a trade on the browser platform, click the green Trade button in the top-right corner of the screen. The order form will drop down from the top of the site.
Enter the contract’s ticker symbol in the symbol field, and TradeStation’s software will generate a drop-down list of contracts for that asset. For example, for wheat (ticker symbol W), we found 12 contracts with various expiration dates. Clicking on an entry automatically populates the order ticket with that contract.
TradeStation’s drop-down list also includes choices for currency, country, and expired contracts. Ensure that the Futures tab at the top of the window is highlighted, not the Options or Equities tab.
With the contract selected, complete the rest of the order ticket. There are two tabs: Standard and OCO/OSO. Despite the name, the Standard tab has some advanced features.
A standard order offers 6 trade types, including trailing and limit orders, and 5 duration choices. The OCO/OSO tab provides more advanced order types, including bracket orders and order cancels other.
Another useful feature for futures traders is the News window, which delivers news articles from Benzinga. Although there is a symbol field in the News window, it doesn't work with futures contracts. Instead, you can find futures news by selecting Futures under Markets in the drop-down menu.
Simulated Trading
Simulated mode is an excellent way to practice trading futures contracts on the web platform. The demo mode starts with $1,000,000 of virtual currency for futures trading, separate from the funds available for simulated equity trading. Balances are shown under the Balances tab, and positions under the Positions tab.
In simulated mode, TradeStation’s platform displays SIM in green in the top-right corner and next to the demo account number.
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Mobile App
TradeStation’s mobile app can also be used to submit orders for futures contracts. The watchlist from the web platform is available here, along with alerts.
Tapping on an entry in the watchlist brings up the profile page for the contract. The vertical chart can be expanded to fill more of the screen, and you can rotate the graph horizontally. However, in horizontal mode, the chart doesn’t fill the entire screen, so it may be easier to use in vertical mode.
The mobile app offers charting tools like technical studies, drawing tools, and plot styles.
Tapping on a graph brings up a window with open, high, low, and close numbers. Inside this window is a green Trade button. Tapping it will open the trade ticket with the contract populated. At the bottom of the ticket, there are toggle switches for stop loss and take profit orders.
The contract’s profile also has a trading matrix on the app, which is essentially a price ladder showing bid and ask sizes as they come in.
FuturesPlus
FuturesPlus is TradeStation’s software for trading options on futures. It’s a desktop platform that offers charting, order entry, and essential trade data. You must have this program enabled on your account before accessing it.
Each window in the workspace has its own function, like charting, orders, positions, option chains, and trade tickets. These windows can be moved around and minimized.
At the top of the platform is a search bar. Typing in a ticker symbol generates a drop-down list of contracts with various expiration dates. You can also search by keyword if you don’t know the ticker symbol (e.g., typing "silver" or "SI" will produce the same list of contracts).
The order ticket on FuturesPlus has drop-down lists for accounts (if you have more than one with TradeStation), order type, and duration. There are also buttons for the number of contracts to make order entry quick and simple.
Like the web platform and mobile app, FuturesPlus has a practice mode, which is very useful for this software.
Phone Orders
Besides the software platforms, you can also submit futures orders over the phone at TradeStation. The broker’s futures desk can be reached at 800-837-8951.
Futures Symbols at TradeStation
On TradeStation’s platforms, a futures contract is represented by a root symbol followed by a month code and a year code. For example, the wheat contract that expires in June 2024 is WM24, where W represents wheat and M is for June. The month codes don’t correspond logically to the names of the months, so they must be memorized.
An alias extension can be added to a contract on TradeStation’s software, though this is optional. The two choices are:
.D = Electronic day only
.P = Pit only
The .D symbol displays contracts that trade 24 hours a day electronically. For example, ESK24.D is the symbol for the E-Mini S&P 500 May 2024 contract that trades electronically. If no alias extension is used, the contract displayed will be the .D contract.
Continuous contracts have an ampersand in front of them, as in @SP for the continuous contract on the S&P 500 index.
Tradable Contracts
TradeStation offers hundreds of futures and futures options products, ranging from commodities to indexes, currencies, and cryptos. E-mini contracts and Micro E-mini contracts are both available. The Micro contracts are just one-tenth the size of the regular E-mini contracts.
Here are some examples of tradable contracts at TradeStation:
- E-MINI NASDAQ 100
- NIKKEI ($ BASED)
- CME MICRO BITCOIN
- MINI-DAX
- LONDON COCOA
- MEXICAN PESO
- 2-YR T-NOTE
- PLATINUM (NYMEX)
- BRENT CRUDE OIL (ICE)
- MINI SOYBEANS
- FEEDER CATTLE
TradeStation Futures Margin Requirements
Margin requirements vary based on the contract being traded. Generally, the micro contracts have the lowest requirements. Here are some examples of margin requirements at TradeStation:
| Contract | Intraday Initial | Intraday Maintenance | Overnight Margin | Maintenance Margin | Intraday Rate |
|---|
| E-MINI S&P 500 | $6,600 | $6,000 | $13,200 | $12,000 | 50% |
| MICRO ES | $660 | $600 | $1,320 | $1,200 | 50% |
| ICE Bitcoin | $11,000 | $10,000 | $11,000 | $10,000 | NONE |
| EURO-OAT | € 3,250 | € 3,250 | € 3,250 | € 3,250 | NONE |
| LONG GILT | £ 2,240 | £ 2,200 | £ 2,240 | £ 2,200 | NONE |
| 10-YR T-NOTE | $935 | $850 | $1,870 | $1,700 | 50% |
A margin call issued at TradeStation must be settled the same day.
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Real-Time Data
TradeStation offers real-time data on futures contracts and options on futures. Even better, the brokerage charges nothing for these quotes. However, it does charge for some activities.
TradeStation Futures Fees and Commissions
TradeStation doesn’t have a base charge for futures and options on futures, but there are per-contract fees.
For futures contracts, TradeStation charges $1.50 per contract, per side. Options on futures have the same price. Micro futures receive a $1 discount.
Exchange and regulatory fees are passed onto the customer, and for futures, these can be significant. For example, accounts that aren’t members of the Chicago Board of Trade must pay an exchange fee of $0.30 per contract, per side for the Micro E-mini Dow contract and $2.05 for the wheat contract.
Orders placed over the phone with a live agent have a $50 surcharge.
There is no deposit minimum to open a futures account at TradeStation, but the broker does have a $50 inactivity fee. It can be avoided by maintaining $2,000 in account equity or placing 5 trades every 12 months.
Other fees that futures accounts are subject to include:
- Delivery ($150 per contract)
- Delivery liquidation ($75)
- Returned ACH ($25)
- Exercise/assignment/expiration ($1.50 per contract)
Futures IRA
TradeStation doesn’t stop with taxable accounts. The brokerage firm has an IRA designed for futures traders. Midland Trust serves as the custodian for these retirement accounts and charges an annual custodial fee, which ranges from $250 to $350 per year. There are fees for other activities as well, such as account transfers and closeouts.
For funds to go into the futures IRA, they first must pass through Midland Trust, which creates more bureaucracy and time to completion. However, Midland offers a variety of account types, including SEP and SIMPLE plans.
Futures Education and Research
TradeStation recognizes that many of its clients are new to futures trading, so it has published educational materials that will benefit beginners. During our research, we found the following online resources:
- An e-book titled Adding Futures Options to Your Trading
- How to Trade Soybean Futures
- Micro Ethereum Futures
- Eurex Micro Futures
Contract profiles at TradeStation don’t have much information. They primarily show trade data.
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TradeStation Futures Trading Summary
TradeStation is one of the few securities brokers that also offers trading in futures and options on futures. Its software for trading is very good, and its pricing on taxable accounts is decent. We would like to see more emphasis on education, but these resources are available elsewhere.
Updated on 8/14/2024.
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